This situation is pretty common. There would always be someone selling cheaper than you no matter what price you are selling. Market places like ebay and amazon are worse as they are so competitive that sellers have to keep slashing profits just to get orders. Most of them are putting up prices that are cheap enough to get first time customers and hopefully to convert them into recurring buyers or upsell them with other products with higher margin. You could never compete with these sellers as this is their intended strategy on these market places. Since you are not selling on these market places and your customers who come to your website will not easily be distracted by another item selling at the cheaper price by another seller, so why bother with selling at prices lower than these market places?

Secondly, you will not be able to beat the prices on these market places as a lot of them are the manufacturers themselves. However, your advantage is you are not the manufacturer but a marketer. Manufacturer is good at producing the products but marketers are better in selling! Therefore  as a marketer, you must understand your customers and target audience better than they do. You could make better videos, you could write better content about the products, you could blog better and you could socilaise better. Customers do not buy just because of low price. Customers do not like to buy cheap products but all of them like to have discounts. So understanding the need of your customers is far more important than just slasing prices.

Imagine that if all the sellers are slashing prices in order to sell the products, who are going to benefit? Keep slashing prices would ultimately result in lower quality products to be made. At the end of the day, this is a vicious cycle and no one is going to make any money online.

Therefore, we do not recommend you to compete solely on price. You should focus on your target market and add value to your visitors. Once your customers feel that you are different from other sellers, they will tend to have more trust on you and they will tend to listen to you. For example, if you are selling pet products, you do not just sell every pet products under the roof. It is better for you to be a pets lover before you sell pets products. Why? Because when you are pets lovers, you do not just sell for the sake of selling. If you are pets lover, your passion is different. You will tend to share more and offer more value than just to sell outright. You will tend to build trust with your audience more easily. Finding your passion is important. People buy from a seller whom they could trust.

Finally, no one care about what you sell but what they buy. Once you speak the same language as your customers and understand their needs, you can sell anything at any price.