I do this quite a lot. Once you add eBay commission and PayPal commission, you are losing quite a bit of money! I mainly use eBay as just advertising, they are rich enough anyway
This is almost the way all auctions ought to operate on ebay (which would eliminate some of the abuses perpetrated). I would favour buyers putting in sealed bids which were then revealed to the seller (and all buyers) at the close of the auction. Everyone gets to see who bid what but only at the end. Better still, get the buyers to put 20% of their bid down in advance, refundable (less an admin charge of say £25) if they weren't successful.