Welcome to SaleHoo Dennis :)
If you source your products via dropshipping you can really expect prices to be competitively low compared to when you buy products in bulk via wholesale or liquidation.
Also you must consider that eBay has become an extremely competitive marketplace so it has become quite common to find products selling at prices the same as or lower than wholesalers.
Plus a number of wholesalers are already selling directly to the public on ebay which makes it even harder!
What can you do about it?
* Order in bulk quantities to drive the wholesale price down
* Sell on another auction site other than eBay â€“ there are heaps to choose from and profit margins are usually better. Craigslist is also a good place to sell if you live in the USA. (Let us know if you need more suggestions for places to sell online)
* Buy liquidation â€“ this lets you get product for pennies on the dollar. (Iâ€™ll let you in on a secret, this is how lots of powersellers make money on eBay these days)
* Find a niche market with few competitors â€“ collectibles and one-off items have amazing profit margins, even on eBay.
Hope this helps! All the best :)