Hi ya, MrFewkes:
Come on Netmeg - theres a product here - I can import it - sell it - make a bit of money... What am I doing wrong exactly.
You may have answered your own question with:
I have NO WAY of competing on price with them due to low margin. They ship to door anywhere in the world - the same product - for FAR LESS than I could even import it for!
Any business - online, offline, hybrid, street stall, back alley - must have a value proposition. You must be able to answer the question:
"Why should people buy from me instead of the other guys?"
If the only answers you have are, "Well, I am a nice guy," or "Because I deserve it," then it might be time to look for a better business model.
I could be wrong, but it seems that your business model is "virtual convenience," meaning you are easy to find because you will (hopefully) be at the top of google's rankings one day.
It DOESN'T seem like you are going to compete on price, nor fidelity (meaning no one else has the product), nor superior quality, nor reputation (requires lots of branding, which is built up through lots and lots of advertising).
So what is your value proposition?
If it is just "virtual convenience," then you will probably have to do whatever it takes to get to the top of the SERPs (see post #5 above).
If I am wrong about your business model, then I apologize. I just don't see what your competitive advantage is...