I have just signed up my affiliate (google affiliate network) apparel site that was hit by panda to a co-branded affiliate program with my same merchandise provider. The co-branded program allows me to avoid using redirects and instead let me use direct links that go to my own version of the store that resides in a directory of the cart. It also allows me to use my own logo. This will certainly help with conversion, but my question is will it remove the affiliate stain that google panda has placed on my site?
Only Google knows but my feeling is that it won't. Am I right in guessing that your site has a lot of product pages and those pages are showing the same images/text that other sites in the affiliate program are? Panda seems to pick on sites that have one or both of those factors working against them.
Product pages need "more" in the form of a real unique review, unique rating system, lively user interaction or other factor that sets it apart from the cookie cutter affiliate product page. Just showing items is not enough anymore.
My site does not use images on from the merchants server. My site has rich original content for each page. I am working on manufacture reviews now, but I will not have product reviews as I do not list individual products. Only categories. I limit all use of affiliate links. Basically one link on each category page. I continue to build on my educational/informative content. I have recently added a news section on the site theme.
I think the big things is the fact google boosted big brands so much. My generic big keywords were the ones that got hit. I still rank strong for smaller long tail keywords.
Going back to the co-branded thing.. Not only will I not be using redirects on my urls, but since I will have my own co-brand directory on the merchant server those pages will not be allowed to be index as they would be dups for the merchant. So The only links on my site will go to non-indexed pages and not use redirects.