ebay sucks for selling domains.. but it sucks for the same reason no matter what you sell: there are non-paying bidders..
most of my auctions on ebay for laptops i have it set on "buy it now" and immediate paypal payment required.. so this is not a problem for me.
but when you sell a domain on ebay or anywhere else, be careful about taking paypal payments or any kind of payment that can be reversed.. stick with: money order/cashiers check, bank wire transfer, and escrow. This is because the Paypal "seller protection policy" does not cover virtual items that are sold. Paypal ONLY covers real items that were shipped out with a tracking number..and items over $250 need a signature when delivered. so, its very easy for someone to do a chargeback on their credit card and win.. slimy but true.
if you do get a non-paying bidder.. just file a final-value-fee request that says "you both agreed not to complete the transaction" and you will get your fee back if the buyer backs out. this is a good option as opposed to saying that "the buyer refused to pay" which could result in retalitory feedback, where the buyer gives you a neg. comment simply because you called them out on not completing a sale.
that said, ebay is a great place to advertise anything, you may get some non paying bidders but ebay is so universal these days it isnt even funny.. there is no better place to reach customers worldwide in my opinion.