I use ebay a lot, both for buying and selling, and have found quite a few excellent bargains. Computer equipment can be a particularly good deal (I recently bought a laptop for a friend for £950 which was retailing in Dixons for £1400), as well as mobile batteries etc. It's also a great way to get rid of all that junk around the house that you don't use anymore but is too good to throw out (and is too specialised / wierd for anyone you know to want). There is always someone out there who wants your stuff.
A good tip is to wait until near the end of the auction before putting in the maximum bid you are willing to pay, as a lot of people bid with days to go and never get the item.