I haven't read this entire post to know if there's caps to commission rates, I just saw mention that commission was 5% per sale.
Personally I'd be all over listing items if it was 3% commission per sale. 5% is reasonable but has me sort of weighing the pros and cons and I'd have to either be more selective about which items to put up or bump the price up slightly from the direct "website price" -- which is fine as long as that's allowed. But I just wonder if having the commission at 3% would gain you more than you'd lose in not having a higher commission. I've wondered the same with Amazon's online movie rentals -- at $5-6 for an online rental that goes away 48hrs after watching it, no thanks. I'll go to Redbox or wait for it to be free on Amazon Prime. But at $2 I'd be renting movies all day long.. and when the $0.99 movies come up I'm renting crap I wouldn't normally watch "just because"
Could also have an option for the Stores where there's a set monthly fee & then lower commissions (like eBay Stores).
The ads in their current placement don't bother me really.
Just my 2 cents at this point.