I haven't used eBay in a while, but I bought a lot of things---even internationally---without ever being ripped off. The feedback system isn't perfect, but it's better than it used to be before it was transaction related only.
Also, it depends on what you're buying. Some categories are more attractive to fraudsters than others, although that doesn't mean that one can't have problems in any category of goods. Although I know some people buy software and computer hardware via eBay for example, I'd be kinda wary myself. You gotta do your homework, checking feedback and the products. Compare products available there with what's available in stores. Check out eBay's discussion boards to see what issues may be of interest or what sellers are participating and what their conduct and rep seem to be. There are several category related boards as I recall so you could look at them if there's a certain category of goods you are particularly interested in.
But it's still let the buyer beware (like elsewhere really) and the rule still is, if it's too good to be true you may want to think twice about it.

For example I recently read that some outfit was selling great anti-spyware software on eBay for $20 that is basically "stolen" freeware---Spybot Search and Detroy---with just a change of name slapped on. Pretty cool, huh? Selling something that anyone who knew better could get for free?
But there are also some quite good and professional individuals (and businesses) also doing business there, so I wouldn't scare anyone away from it. I'm mostly into I guess what people would call "collectibles" (aka junk, lol) so I've gotten some great deals and things I'd have trouble finding elsewhere. So while my experience has been quite positive, your mileage may vary, as they say.
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