My problem with ebay is that people don't bother to research the market price for anything and, under pressure, bid substantially higher than, say, the low-end prices found on a froogle search for the items. I got tired of playing the bid game with idiots...
For example, I looked yesterday at the prices of used Rio Receivers on ebay (historically) and found I could do better getting a refurb via an online merchant elsewhere. Also, the shipping would certainly be cheaper than the typical $15-$20 that most ebay sellers charge.
-brendan