I don't know how this has got 6 endorsements, it is unplayable. As others have said, you can ask him what he has for sale, but nothing else happens. The quest can't even be started using console commands! I did manage to fix the floor of The Sleeping Giant in the CK though. For some obscure reason, a couple of pillars had been removed and the floor meshes hadn't been lined up properly. Not much use though if it won't start. p.s. Surprised to see him in Dremora armour, I almost killed him on sight!! lol
Let's see you' left seams a nd a hole in the floor in the Sleeping Giant. You dude in daedric merchant does'nt start any quest and the dungeon well it's locked and in a location used by another dungeon mod( More dungeons). So you need to sort all the above out and tells us a bit more as to how to start and why> There is no story.
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p.s. Surprised to see him in Dremora armour, I almost killed him on sight!! lol