This, this, a thousand times, THIS!
If you are charging a reasonable price and people are undercutting you, that's fine, your stuff will eventually sell.
If it doesn't sell, then you're selling your stuff for too much. The increased supply from sellers means the price *should* go down.
If it's not worth your time to farm for the mats and craft the item because the profit margin is too small, look to making another item that's more useful and/or has higher demand.