Make sure your products are competitively priced
I'd call that an understatement. From what I see, Froogle is the realm of discount sellers who rely on volume for viability, not your average e-commerce site. I don't see being the low price leader as a sustainable tactic, and in fact will put you on the bad side of the rest of your "community". While in my market we all are competitors, certainly, and prices can vary widely, the one or two sites who undercut the rest of the market and devalue our products are under constant attack from the community and even the manufacturers of the products. If I choose to use Froogle, which I expect to this year, I will do so on only select products, not the whole catalog. Great advertising, but you have to move a lot of stuff at some of the prices I see to make anything.
Another thing I notice is many of these discount people have really high shipping rates ... little bait and switch maybe?
Well, definitely it's free, so it certainly can't hurt.
Now I've noticed that Froogle does have user reviews. I might be using froogle from now on.
I'll admit that when I'm shopping for electronics I read lots of reviews. As a small retailer however, it wouldn't take much for someone a little miffed from a backorder to trash your reputation. More people rate poor performance than good, so unless you are staffed to respond instantly to requests, can guarantee you will always have stock to fill orders same day, I'm not sure reseller ratings are a plus for many e-commerce sites. I've never dropped the ball yet, but can easily conceive of an occasion where demand outstrips my ability to fill an order the instant I get it, as I can only stock so much.