Don't you hate it on eBay when people come in selling exactly the same product as you, but completely ruin the price.
Here is an example that I encountered. I bought some skateboard bearings and for about six months I sold them at £6.50 each + £1.00 Postage. I suddenly got a competitor, who ruined the price by selling exactly the same product at £4.00!
Well that was a year ago and I still have more sales than him!
So how did I do it?
Well I did have to cut the price, but the bearings were still slightly more expensive. The first thing I did was to buy lots more and get a discount. I ended up saving about £1 per unit by buying three times as much stock. I realise this will not be helpful for all of you, but it is something to concider.
The second thing I did was to set up an eBay shop to show I had more authority. I was a serious seller who was safe to buy from.
I then studied my competitors description and adapted my description to cover all of his points and lots more. I looked at his description and I thought about the points it missed, what questions would people e-mail him about?
I made the description short and to the point. Making it easy to quickly gather facts.
Instead of the one photo I inserted two so that there was a clear image of a close up of one bearing and a shot of the whole item they were bidding on.
I worked on my feedback. Unfortunately I was at a disadvantage as I had two negative comments from difficult customers. However I responded to them on my feedback page to show customers the problems. I have also been as efficient as possible to send the items to them so that I am left with glowing feedback.
I learned some very basic HTML to make my descriptions stand out with tables and links to other pages.
The shop let me lower prices even more as fees were cheaper and I could promote more easily.
Looking at the item title I looked at more ways it would get found in searches. I Included as many words as possible.
Finially I adopted several promotion features. Though it cost more, I was selling more than enough to cover it. The best thing was in the first month I sold 240 bearings and my competitor sold none.
I hope this helps.