Put your prices up...

Too many eBay sellers are trying too hard to be the cheapest for what they sell. Generally, it's not worth the effort: someone, somewhere, will always be able to undercut you. Duct Tape Marketing's John Jantsch has a great take on this:

Look, competing on price is a tough strategy, there will always be someone willing to go out of business faster than you. When you raise your prices across the board you may find that some of your customers balk and even leave. Generally, as long as you give a solid reason why you are increasing your prices, the ones that leave are the ones that came to you based on price anyway. So do the math on this. Increase your prices by 25%, lose 10% of your customers. The magic formula of "do more with fewer customers" just tilted your way - and you increased the bottom line over night.

There are so many other ways to compete on eBay: excellent photographs can double your selling price, for example. Having all the necessary add-ons can bring in more customers: if you want a range of things, do you want to go to one seller or a dozen? Having terms and conditions that read like someone you might actually want to do business with is so important. And if your competitors think that all that matters is price and maybe feedback, all or any one of these things can give you the edge.