For anyone wondering if this method works in 2014, I am a newbie and trying this method. Here's what I've done:
I started one week ago. I used a domain I bought 2 months ago (so it was already somewhat indexed by Google but no good backlinks), and then I used the free version of Prosociate to auto post. So for example you could search "lawn chairs" under the Patio category and it will post the first 100 results for that search and you can assign it to a specific Product Category on your site. So you could do this like 10 times / 10 different categories and there you have 1000 products on your website. It works only with WooCommerce (free) and you can use any theme compatible with Woo.
MY RESULTS:
Every few days I noticed a climb in Google index results for my site, so 80, then 120, then 200, then 300, and so on. It's in the health /weight loss supplement niche. The site is mostly products in addition to 5 somewhat original blog posts I wrote on general niche topics. I manually made about 20 Web 2.0 backlinks and then... about five days after I had created the website, MY FIRST SALE! Yay, a whole dollar and eighteen cents (yes, $1.18) in profit!
By the way, I should point out that this ONE sale came from a (somewhat original - aka it took me 5 min to manually spin) review I had posted on a #1 bestseller Amazon product. So, the actual auto blogging made no difference 5 days in.
However, I'm still curious if this method works. What I've learned so far is to create original content on popular products ALONG with your auto posted e-commerce Amazon store. That's where my one sale came from.
TODAY:
I just yesterday paid for an SEO backlink gig on Fiverr to see if that will help me in any way. His service takes six days and on day one I've already gone up to 800 indexed results on google. I have a total of 1200 products on my site.
EXAMPLES TO FOLLOW:
If you're looking for a great example to follow, check out ToolFanatic (I can't post URLs so google it). He has a premium theme and sold his site for $26K after making $1.7K per month. Look on Flippa for other Amazon associate websites that have sold.
GOOD LUCK! ...and wish me luck too!