I use paypal to sell some patches -- it's great! They take care of all the money and processing, and provide you with the necessary button and cart coding.
You would still need a domain name, server, etc. And you would still need a good looking site. Paypal is definitely a good "next step" if you have success on eBay, but I would strongly suggest you start there. They provide everything you need, and you know you're going out to a huge audience.
After a while, if eBay is successful, you can start an eBay store, or an eBay ProStore, or you can start your own site with links back to eBay.