eBay business?

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Is is feasible or possible to have a successful business based around eBay?

I've recently been buying and selling a few things there and I found it to be a very positive experience. This sort of distanced business would suit me very well and I could work from home. I would obviously have to have real world contacts such as postal services, courier and suppliers. I would be interested in building custom PCs for people as I enjoy this sort of work a lot or selling videogames, books and DVDs would also be interesting.

The success stories you hear are from people who happen to find a high demand item that they can buy at a substantial discount, and in great quantities. But it has to follow those guidelines, otherwise your profits end up being too small to make it worthwhile. If you could get a wholesale license and buy video games at wholesale prices, then get them on Ebay, you might make a go of it.
The downside is that an item that sells out today might not sell at all tomorrow.

Unless you can get good suppliers the margins are very low. Ebay fees are extortionate compared to other points of sale. However barriers to entry are less of a problem.

Individuals who sell on ebay exclusively often take big risks such as buying upfront in bulk from generic manufacturers in china (that may or may not exist) or relying on dodgy 'drop shippers'. You need some capital no mater what. Take note it is primarily a people business you need to network for your goods and you need to suck up to your customers. Ebay companies that do well either usually trading well before they use ebay and/or have really good business instinct. Ebay also has a sizable grey market.

Some people have used ebay in a cottage industry way selling arts and crafts and home made goods, etc. However ebay works on categories and things that are already/easily classified. If it not something already established in peoples minds, or has instantly recognizable parallels with other products it is a bad place to put your product because it will get lost and people won't really be looking for it anyway.