Yahoo ads on Ebay.

Im getting alot of visitors to my site through the Yahoo ads that show up on ebay.. Which is great its a lot of very relevant searchers who are looking to spend money. My problem is in the industry im in ebays sellers can sell there products for way cheap... like below cost cheap... (many other distributors are confused by this and think there is some back door stuff going on).

If my prices cant really compete with what can be found on ebay should i not be advertising there?

I was thinking about sending any visitors that come from ebay a chat/pop up saying get a 5% discount coupon now by clicking here... this would atleast hope they'd use the coupon.

What do you guys think?

Ebay can be a tough market and ebay people can be tough customers. People who go to ebay are looking for a great deal, so if you advertise there you better be able to deliver in competition with the ebay sellers. (If you have analytics you should be able to determine if these customers are actually buying from you.)

Lots of the people who sell on ebay get their merchandise from one of these methods, which you might not be able to compete with: 1) liquidation lots, 2) theft, 3) knock off manufacturing.

I used to be an ebay powerseller but found that I could sell cheaper and with a lot less work and hassle on my own website. I walked away from a successful ebay store.