eBay has been going through some massive upheavals recently and with the new changes they have introduced, plus the fact that there is more competition than ever, it's not as easy to make money as it used to be.
That said, plenty of sellers are still doing well.
eBay still gets the most traffic of any auction site and this is an advantage that can't be ignored. Some sellers keep a few items on eBay just to direct traffic to their offline stores.
The sellers who make money on eBay spend a lot of time doing market research, experimenting with different products, and looking out for special deals from suppliers. (Tip: They often use liquidators to get items for pennies on the dollar).
The SaleHoo research and analysis tool is a big help when looking for new niches to make money from and you'll also find the forum very useful for getting tips on how to buy items at great wholesale prices (and even below wholesale). This is essential for making money on eBay these days.
The other option is to do what hundreds of eBay sellers are doing, and migrate to another auction site.
Addoway, Bonanza, Overstock, eBid, BlueJay, Amazon auctions, Online auction, eCrater and Craigslist are just some of the sites ex-eBay sellers are currently making a killing on.
The key point to remember is that the internet is in constant flux. You need to work hard to keep tabs on current trends to make maximum profit. If Craigslist is doing well, sell on Craigslist. If you find a niche on eBay, sell on eBay. Heck, many sellers sell on 3 or 4 different sites to get the benefit of numerous audiences! Keep experimenting, testing and reading the forums and you'll do just fine!
Hope this helps.