If you are selling virtually the same type of products yes, it would be difficult to compete.
Why not try selling on other sites? There are many other promising sites other than eBay. It might be time to try them seeing as you feel you have no means of competing on eBay.
But I would not recommend completely removing all your listings on eBay, keeping a few active is still advisable with all the traffic that eBay gets you are bound to benefit from it one way or another - either you will land a sale or divert traffic to your off eBay listings.
Sometimes, working on creating a really good listing can help keep you competitive even if others offer a much lower price. Here are some general tips for getting more sales:
* Work on your product photos. Good pictures convert to more sales. And statistics show that the more pictures you have, the higher the selling price. If you are selling clothing, consider getting a mannequin. Buyers will always choose a professional picture over an amateur one.
* Make sure your item description provides LOTS of detail. Buyers like to learn as much as possible about the item before they buy. The best sellers on eBay have lengthy product descriptions to ensure the buyer isn't left with questions that might prevent them from bidding.
* If your feedback isn't skyhigh, then work on it. eBay buries sellers with low feedback ratings in the search listings, so less people are going to see your items for sale. The best way to get your feedback up fast? List as many items as you can and consider having a sale (either reducing the item price or offering free shipping). Even if you lose a bit of money now, you'll reap the benefits in the long term when your feedback is higher and your listings more visible.
* Try offering faster shipping. Ship the DAY payment is received if possible. Buyers have high expectations and getting their item delivered in record time leaves a great impression.
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 differnet sites to get the benefit of numerous audiences! Keep experimenting, testing and reading the forums and you'll do just fine!
Hope this helps :)