Juicy £80 profit for Mallard customer

you report correctly

"I pitch our target selling price below ebay's average where possible because we are trying to draw people away from ebay and to come to us"

But this policy cant be working!

Why does ebay get so many sales at higher prices than ours and without the guarantee that we give?

The answer is simple. Those people don't know we exist so a policy to "pitch our target selling price below the EBay average" is falling on deaf ears.

If we seriously wanted to compete with ebay we should be ON ebay, not necessarily with loco sales but certainly a "get you going" kit where in the wording we can intimate our loco sales policy.