These are all very common issues with PPC clients. They are also the reasons I have so much information on Web Design, usability and conversions in this PPC forum.
You will probably have to gradually help any client you may work with to better understand all of the complexities of e-commerce. Some will be more challenging than others and none are likely to completely understand what you're doing.
Both Yahoo Stores and Volusion have very solid shopping carts and are constantly improving their store solutions. Those sites usually have far fewer conversion issues so you might want to hang out your shingle where they may find you.
The best PPC products have an average sale of over $60 (either per item or people tend to buy multiple items) and they sell something that is well known, is manufactured in a huge selection of styles, colors, sizes and not widely available offline.
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