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Sorry for being so blunt, but...
handbags that you sell seem much nicer than the website itself.
1) It would be nice to have handbag model names instead of IDs on the home page. After all you are trying to sell fashion items - not car engine parts.
2) I agree with the previous poster that you need a call to action after user adds something to the shopping cart.
3) After I've tried to add something to the shopping cart it wasn't there. Second time the website froze for me (could have been Chrome compatibility issue (who knows)), Third time, I've got a message that I don't have enough rights to do that.
4) I guess that user is expected to create an account before he/she can shop. Nobody is going to do it. If you do want users to create accounts you can show the registration form when user checks out. If you want to sell - make shopping easy. Just look at how Amazon does it - buying from them is super easy and that's why they sell a lot.
5) "Payment" page is kind of useless. By explicitly explaining about Paypal you can scare off some users. Let them find out about it when they check out.
6) Overall the website doesn't look professional and personally I wouldn't buy anything from such website and I guess many users would not too. So if you are going to buy PPC traffic, you are bound to lose a lot of money because of the issues mentioned above unless your margins are super-thick.
Layout and colors are ok but given all mentioned above these are the least of your problems.
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