That's a tough thing to do, compete with eBay. People will be turned off by the fact that there is nothing to buy and no one buying so you've got the difficulty of getting early users. I see you're trying to offer things for free now to get users, still tough. People won't care about you offering free things if no one is buying on your site.
Good luck getting that off the ground. It is nearly impossible to compete with a big business like eBay, Google, Microsoft, Yahoo, etc.
I would say you are better off working with the eBay API and doing something interesting with it. Maybe you could have some kind of "promote your ebay listing" option for members and then maybe you can get a few users to use your site. Still, it's an uphill battle and you're bringing like a butter knife.
Sorry to sound harsh, I just don't see how you're going to compete.
To be honest the mistake that many people make is in assuming that all they have to do is mimic a popular site such as ebay, make their fees cheaper and the cash will come rolling in.
The reality is that people use ebay as it is a very well established site with a huge audience.
Sure the fees might be expensive compared to their rivals and there are many "I hate ebay" sites, but the truth is that ebay is still the number one.
They have millions of vistors to their site.
Ask 100 people to name an auction site and 99 of them will say ebay.
But you don't want to play against them in their own game, building an auction site mimic eBay will unlikely to success.
Buyer like eBay, because they can find deal from trusted seller and with PayPal fraund/refund protection. eBay buy it now items are cheaper than Amazon even without Bing live 8% cashback, and according to eBay, auction format items are even 10% cheaper than the same items of Buy It Now format.
However seller is a totally different story, especially, those small/casual sellers, they are charged with ridiculous eBay/PayPal fee, for example, in Video Game category, the closing fee is 15% plus listing fee and 3% PayPal fee, so if you don't have 30% up-sale margin, you don't make money. Amazon is not any better, it charges the same or even more. These sellers are very motivated to find a trading platform (free or with reasonable fee)