I'll assume you're also talking about the original Win 95, not Win 95 with the OSR 2.1 upgrade installed. So, some differences, as derived from a retail box I still have for W98SE:
File system: W95 used FAT16; W98SE could use FAT32, resulting in more efficient use of drive space.
W98SE had better support for digital cameras , scanners, and other devices.
USB support: Little or none in W95; W98SE provided Plug and Play USB support, meaning you could plug USB peripherals into your PC's USB port without rebooting.
W98SE provided better graphics for gaming since it was built on DirectX 6 technology. and supported MMX technology and AGP for video cards.
W98SE provided better multiple monitor support, allowing you to expand your work or games across multiple monitors.
Internet Connection Sharing: not present in W95; was part of W98SE.
Application launch time: "36% faster" with W98SE.
Windows Update: automated updates were part of W98SE, but not W95.
Windows NetMeeting, which could be used to "see, talk, and work" with family, friends, and colleagues, was part of W98SE, but not W95.
There are probably other differences worth noting; perhaps someone else will post some.