It's not like で is conditional. Actually, the whole part preceding ば is conditional as a set.
[いい品物で、安い] + ば --> いい品物で、安ければ
As you can see, this で is the -te form of copula, and it's used to continue clauses, i.e., used as "and" here, as Google Translate interpreted.
いい品物なら、安ければ、 sounds odd. いい品物なら、そして/その上安ければ、 is acceptable, but いい品物で、安ければ is more natural.
If the word order is 安くて、いい品物, なら is used, as you understand correctly. In this case, both 安い and いい modify 品物 as an adjective, not clause, though.
安くて、いい品物なら、たくさん売れると思います。