I looked at someones store the other day that has some ebooks. They were selling them for 10cents. I looked at the list of stuff one would get and it was impressive. However I thought the person was cheap, like selling really cheap. I really thought if their ebook has some stuff, then it would surely be worth say 9.99. How can you think you are going to pay bills at 2cents a hit. If you sell just 5 a month, then you made 50$ instead of 10cents. If you are selling the same ebook that everyone else is and they are selling for 5cents, then you all are in a loosing situation. You need a new ebook that is different and worth 9.99.
I sell typical type items and people undersell me all the time. I sell for a certain price and am a bronze seller. I am about to tweek my prices up with a fixed handling on everything and a minor tweek on ship to just get that edge. I suspect my sales count will go down some, but my gross will go up and I can work less to make just a bit more. Many people find ebay products outside ebay and land on your page an buy without making any comparison except to what you offer. Sometimes cheap is way toooooooooo cheeeaaaapppppppp to get a sale.