many these kind of prices will be power sellers. actually making a loss these items just to keep the % feedbacks above average. and keep in good health, it makes great sense and good thought, as it "works", losing a few dollar here and there to keep making great profits on other items,
and competing with cn sellers, ?? yes it makes things harder, but in my experience (14+ years) not always the lower price gets the sales, in fact, on the "right" items, the lower prices look too good to be true which will deter a good % of buyers, i sold so many items higher price then cn sellers and sold so much more then cn sellers on many items, , if done correct then weather you a cn seller low price or a eu etc seller high, is not the issue,
its how you advertise and what you advertise,
advertise correct = sales ,
low or high,
also a quick note, many euro buyer not like ship from cn, as delivery times etc, so buyers will gladly pay higher price if ship from within eu and not cn,
so cn competition??? if you have competition and not competing??? then time to change plans/products.
if you also ship same items direct from cn and so does competition, then not the right way/product. .
LOWEST PRICE NOT MEAN MOST SALES.
FACT
99p postage from hongkong wow!! 
OR 
