Three of five
Your prices are not too high
That is almost always the first conclusion, and I understand exactly how you got there, because it is the only explanation the whole situation offers you.
Nobody is buying. The thing is priced at what it is priced at. So the thing must cost too much.
What happens next is a pattern I could set my watch by. You bring the price down a bit, and nothing changes. Then you run a discount, and maybe two people bite and neither comes back. Then you start changing things.
The title, then the first photo, then the tags, then the title again. Tweaking, constantly, with no real method and no reason behind any of it, because at that point you are not testing anything, you are just moving your hands so it does not feel like doing nothing.
I did the marking down version of this
I once ordered a whole batch of Liberty fabric and accessories, completely convinced it would walk off the shelf on the Liberty name alone.
It sat there. For ages. And in the end I marked the lot down just to shift it, which felt awful and taught me more than the sale would have.
Two things were wrong and only one of them was the price. I had never checked whether anybody actually wanted it, and when I did come to sell it I described the fabric rather than what somebody could make with it.
Here is the actual problem with dropping your price
You cannot test a price on traffic you haven't got.
If 9 people saw the listing this week, then lowering it by £4 has told you nothing at all. You have not run an experiment, you have just earned less on the sale you were going to make anyway.
Price is a thing you can only learn about from a decent number of people looking and deciding. Below that, you are reading tea leaves and paying for the privilege.
And underneath all of it is the belief nobody says out loud
Everybody believes the market is oversaturated.
That one sentence is doing more damage in this world than any algorithm change ever has, and it is doing it quietly, because it never gets stated. It just sits there and shapes every decision after it.
Follow it and the discounting is completely logical. If the market is full, and there are 40 other people making something a lot like yours, and buyers can see all of you at once, then the only thing left to compete on is being cheaper. You are not being daft. You are being sensible inside a belief that is wrong.
I believed it too. I was certain the craft supplies market was shut, because there were established names in it already and a major high-street brand sitting on top of the whole thing.
I got in on high quality and fast shipping. That became the thing I was known for, and it earned me my place in a market I had written off.
Saturation was never the barrier. Not having an angle I could own was the barrier, and those are so different that the first one is not even worth arguing about.
So if it is not your prices, the question is why nobody is walking past your shop in the first place.