How easy is Drupal for E-Commerce? I'm looking for the right tool to develop a peer to peer trading website that would include E-Commerce. The site would need to allow registered sellers to enter details about their products this information would then need to be stored in a database that would allow buyers to search based on a set of parameters. 

Would all this be achievable with current Drupal modules and how much additional coding would be required to knit it all together?
You don't need any coding to achieve this functionality, you can just go with Commerce and using Drupal's built-in roles, manage who has the permission to create content (items to sell) and who has the permission to buy it.

for the search aspect of it, I suggest trying Search API, which gives you facet like filtering feature (Like ebay), also you might wanna check Apache Solr for faster indexing