Hi Leon, welcome to the forum.
The subject of eBay prices is something we discuss quite a lot here on the forum, and you will find plenty written as to why the prices are as they are so I won't go into great detail about it.
EBay prices reflect a wholesale price for the most part, they are not retail prices that you would find in a walk in store. This is essentially because eBay is now used by wholesalers and drop ship suppliers as a sales avenue themselves.
Many will sell products to you as a supplier and then sell against you on a site like eBay to increase their trade, of course they can afford to sell at a price that they have just sold to you at, and in some cases much lower if they are moving good numbers of stock as they can build a volume discount into their prices.
As Richelle has said, wholesale is your best bet, but high volume wholesale is your best bet. You're not just going up against mum and dad sellers on eBay anymore, it's become a massive platform for large business to make money through, and these guys don't mess about buying one item at a time from a drop shipper, they buy container loads at a time to ensure the best possible price, then cut their margin wafer thin to sell turnover.
It's not the same for all products, but that's the challenge with eBay these days, very hard to just turn up and make good money, you need to research and find markets that aren't over exploited.
In regards to drop shipping, their are many that do make money from drop shipping, but that is usually based on a high number of products listed, the more you list the more chances you have of hitting a sale type of thing. This can be a risky strategy as you still need to be competitive with what you offer and there are no guarantees of sales.
If you want to stand out from other drop shippers and the suppliers themselves, maybe consider offering bundled products. Find 2 or more items from a the same supplier that compliment each other and list them as the one sale. What this will allow you to do is drop your margin on 1 or more of the items and make your margin on just 1 or 2.
What this will mean is real terms is that you will be cheaper to buy all these items from you rather than buy them individually from someone else as when listed individually, they will each carry a margin.
You do have to know your market and you would have to know what products to bundle together for this strategy to work, but eBay shoppers look for value above all else, provide them with that and you are in with a chance!