Hi Dave and Peggy,
Haydee is right, eBay has become one, if not the most competitive marketplaces online. Plus they have been going through some massive upheavals recently and with the new changes they have introduced, and the fact that there is more competition than ever, it's not as easy to make money as it used to be.
eBay still gets the most traffic of any auction sites, though, and this is an advantage that can't be ignored. Some sellers keep a few items on eBay just to direct traffic to their other stores. 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 selling on your own website yields better profit margins, then sell on your website. If you find a niche on eBay, sell on eBay. Many sellers sell on 3 or 4 different sites to get the benefit of numerous audiences.
And as Haydee mentioned, you can either order in bulk quantities to drive the wholesale price down, or buy liquidation to get items for pennies on the dollar. This is how some sellers sell their products at prices the same as or lower than wholesale and still make money on eBay.
Good luck with your business! Sing out if there's anything you need.