Thanks for your reply. i've thought some more on this topic and also checked out more prices (very expensive pack and send)

I'm thinking i'm going to do it. restrict the service to 4 - 5 high volume ebay sellers maximum. Use the space i have at home or rent a storage unit and only offer Auspost as the delivery method. Insurance quote checked out pretty cheap (in the extremely rare event of fire/theft) and as i will be the one doing the work there are no picking/packing staff overheads.

Stock would be held by me. seller will send an excel spreadsheet with a picture of the item and the address and i send. Simple and cheap for seller, easy to organise and the seller knows that its been sent with a confirmation excel spreadsheet sent back to them.

Just musing at the moment but i can't see why it wouldn't create a win win situation, obviously would have to iron out a few details. Any ideas or potential issues would be much appreciated ebay community!!