My guess is they don't... In other words does your store have to be the actual place where you can purchase the product, or can it be say... an Amazon store.
No. According to their Program Policies, "Posting is not permitted for the promotion of affiliate sites or products sold through an affiliate marketing relationship. This includes item pages that are made up primarily of advertisements."
It was kind of common sense... Froogle has so much potential... They really need to work on that... It could very well kill eBay with their hardcore fees! Just integrate it with Google Checkout and allow people to post their stuff for sale... I don't think you should be a webmaster in order to do that.
Froogle is great if you know how to format your product titles and descriptions. People often think of Froogle as another Shopping.com or Bizrate. Froogle is not that at all... Froogle is a search engine that creates more real estate for google ad words. If you want to do good with Google you have to optimize your products as you do a webpage
In other words does your store have to be the actual place where you can purchase the product, or can it be say... an Amazon store.