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Can we please make a viable (federated!) amazon alternative? I have an idea!
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I think the biggest issue is that if you already need to separate payments, returns, shipping, etc... you're left with a shop that also advertises products for other shops, possibly competitors. Then the question becomes... why bother federating at all?
I think it'd be better to set up a FOSS shopping platform, eg something that competes with WooCommerce or the likes. That's significantly easier from a financial and legal perspective, and I think it's an easier sell to actual merchants (why pay a license for that shit, use this one for freeee). Then once you have that running, you could think about optional federation as an addition to an already well-functioning platform.