There used to be several alternative UK auction sites, Yahoo springs to mind. I think they were made an offer they couldn't refuse, so packed up. Funny that, today's large businesses, the ones that control things, didn't get where they were by being best, they got there by anhilating the competition
I got stung recently, bought a toner cartridge for the laser. It was nicely packaged in a recyle box, shrink wrapped etc, so I put it on the shelf. When I came to use it, I found out it was empty, and crapbay had closed the seller's A/C. I emailed them asking for a copy of the auction, but they never bothered replying. £28 down the drain.
Paypal are voluntary members of the FSA, so you can sometimes push their hand by threatening to complain to the FSA.
I have 2 ID's, just in case some clown destroys my 1000+ feedback.
I don't know what would be a good alternative to ebay. Exchange and Mart used to be a good way of sourcing stuff, although it didn't cater for small items. And Micro-mart used to be good for computer stuff. The beauty of these was you could always take legal steps to complain if things went wrong, cause you knew the person's address or phone number, but with paypal accounts you have no idea who/where you are dealing with.
I don't know what would be a suitable alternative these days, how about
OOF-Auctions.

Ken