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Is there an "eBay auction website" in Japan?

Actually, there used to be an "eBay Japan" auction website in english that started in 2001 but eBay has closed this website in March 2002. At present, Yahoo Japan Auctions is the largest auction website in Japan.

How to bid on Yahoo Japan Auctions?

Since most Japanese sellers will not deal with bidders from outside of Japan, it's a good idea to use an intermediary service that will deal with the seller on your behalf.
At this point, you can use JAUCE.COM website to place your bids in "very" real-time and they will do the rest to ship the items to your home.
This way, you can enjoy Japanese online auctions from the comfort of your own home  and pay them through PayPal.