Your prices are extremely reasonable, the only thing I wouldn't like as a buyer is the ribbon used on the luggage tags, it would be nicer if it was thicker/made out of the same material as the tag itself. But I definitely wouldn't recommend lowering them, your price tells me alot about quality and in your listings you sound certain about the quality of the work and materials gone into your pieces.
Would you be able to offer shipping to more countries than just the US and Canada?
Your items could be things people only buy when they're planning to go abroad, I like your pieces and if you shipped to the UK I'd favourite them and probably purchase at a time when I'm likely to go abroad. That could be the problem. People definitely like your items. You might want to add tags such as 'holder' and 'holiday' to your items so they're found easier.
Also I checked your policies, doesn't the postal service you ship via, refund postage costs if something goes missing? I know I wouldn't be happy if I had to pay additional shipping for something I didn't lose.