Small business forum Australia

Hi there. Just looking for some advice. I have been looking at starting up a small online or eBay supplement store. Am meeting with an exclusive australian distributor but the prices they are already quoting are much, much more than the products are being sold for currently on eBay. Have also looked at importing from overseas- is that what most people are doing? At the wholesale prices quoted I can't even see how a retail store would survive? I realise that this is a very tough and competitive market but how can a business survive the much cheaper prices on eBay and the like?