I run an Internet business from home, all be it selling digital products, not physical ones. If I were selling physical product though I would have a good look at Ebay. You can create your own online shop within it and tap into the vast traffic which they have waiting for you.
The most difficult thing for any new web business is traffic. It's not as easy to get as people think, so leveraging Ebay's existing marketplace, to begin with, isn't a bad idea.
And by the way, its not "unprofessional" to use Paypal. It is convenient though, and these days, you don't need a paypal account to *buy" using paypal either.