If you have competitors selling the same product as you on eBay, you could compete by reducing your price. But that means reducing your profit and will probably lead to a "price war" where your competitors reduce their prices until no one is making a profit. The only winners are your customers who enjpy lower prices.

A better way to compete is to increase the perceived value of your product, so your customers will get better value by buying from you instead of from your competitors.

The easiest way to increase the perceived value of your product is to add FREE BONUSES. Think about it: if several people are selling the same product on eBay at the same price but one is giving a free bonus, who would you want to buy from?

Any free bonus that you offer must be relevant to your niche, and ideally linked to your product, so your customers will be interested in it. Offering a free bonus that is not of interest to your target market will not encourage them to buy from you.

Ideally, the free bonus should cost you little (preferably nothing) to supply but have a high perceived value to your customers. For this reason, information products are ideal to use as free bonuses.

An information product is anything that gives the consumer information - usually teaching them how to do something.

An information product can be PHYSICAL (such as a CD, DVD, paper newsletter, book), DIGITAL (such as an ebook, audio or video on the web, blog, membership site, RSS feed, podcast) or INTANGIBLE (such as a seminar, teleseminar, coaching, mentoring, consulting).

If you do a Google Search on "your niche + ebook + resell rights" you may be able to find a low cost, ready-made information product that you can give away FREE with your item. You can then add "+ FREE Bonus" to your listing title, or as a sub-title, so people are more likely to click on your listing rather than your competitors.

But its quite easy to make your own information product. You can write an ebook about some aspect of your product - perhaps how to use it - and copy this on to a CD to send with your product. Or, better still, video yourself using the product and copy the video to a DVD to send with the product.

If you have any testimonials from existing customers, add them to your listing. To get testimonials - ASK! Ask your customers to send you an email stating how much they like your product or your service. Offer them an incentive to send you their testimonials, such as a FREE information product.

Some people show their feedback in their listing. Although displaying your feedback in your listing makes a strong visual point, it can be a very long and tedious list. It might be better to suggest that they check out your 100% positive feedback by clicking on the "See detailed feedback" link at the top right of your listing, or by going to your About Me page where you can have your feedback listed.

You can also differentiate from your competitors by offering better terms and conditions. Many sellers don't pay much attention to their terms and conditions. This is a mistake. Good payment/shipping/guarantee/return terms can give the visitor to your listing sufficient confidence to place a bid. You can make better terms and conditions your Unique Selling Proposition that differentiates your business from your competitors.

Keep your terms and conditions simple, clear, easy to understand and fair. Too many "ifs and buts" will scare potential customers away.

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Martyn Boaden is the Founder of The Online Auction Resource Centre where you will find more information and all the resources you will ever need to set up and run your successful and profitable eBay business. And for a limited time only you can get instant access to his popular eBay Business Box (worth $164 + $17 pm) for FREE by clicking this link: http://www.TheOnlineAuctionResourceCentre.com