It's an unpleasant fact of life that things aren't always fair. As a small handmade business you have to compete with bigger businesses with bigger budgets and lower prices, more successful and experienced small businesses, and sheer diversity of products available on the market. It can be frustrating and depressing at times.
There's also nothing you can do about it.
What you can do something about is your own business. You can take better photos, write better descriptions, promote your business more, write a blog, build a fanbase on facebook, and all the other things I've written blog posts about. You can only control you. As we get closer to the busy holiday shopping season it's important to remember this and to focus on those things we can do instead of getting sidetracked by the things we have no control over.