That's one of the main problems with any type of dropshipping. The market is too crowded and the profit margins are too low to make any type of profit at all....
Keep in mind that there are hundreds and hundreds of sellers using the same dropship site, selling the same products. You can not expect to compete in this type of marketplace...
You should probable switch your efforts toward finding and buying 'liquidated, surplus and closeout' goods...When buying in this type of market you will be able to buy the goods to resell for literally pennies on the dollar and way below any wholesale or dropship price...
The people that you see selling for 5 dollars below your cost are either buying their products in large 'bulk' quantities or buying them through liquidators...And more than likily they are making a good profit on their items even selling cheaper than you are....
It's much more cost effective to purchase in bulk,(if you have the capital) and even better to buy a pallet or 'small lot' from a liquidator or surplus seller...
To get an idea of what I'm talking about, visit these sites:
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