I've been hearing good things about Andrew Burt's ifiction web resource for authors. He's written about it here: LabLit.com article/267.
Since many authors know nothing about setting up web pages, let alone the intricacies of password protections and taking payments via Paypal, iFiction lets authors link to a page that displays their story or novel and collects payment or donations via credit card for any pieces they might want to publish on the Internet. All the funds collected go to the author (none to me, though of course PayPal is happy to get their share: 30 cents outright and 3% of any money that is eventually collected from readers) and most pieces are either free (donate if you like ‘em) or less than a dollar.
iFiction allows an author to choose how much of their story they want to display for free, then collects payment before letting the reader see the ending. If you have an audience for directly selling some of your work, iFiction makes it easier for your readers to pay you. If they have to think about how to get money to you, and have no encouragement to do so, it cuts down the chance they actually will. Here they can just click, you get paid, and they get to read.
iFiction is intended for authors who have an existing audience, for example a writer who has already sold the piece to a print market and wants to make available a reprint online to squeeze some more money out of the project. But anyone is free to use it as they wish. Essentially all an author needs to do is click a button to upload a manuscript and enter their PayPal payment address, then spread the word.
And spreading the word is the hard part. iFiction is not like an online magazine or bookshop, since there's no marketing. Nor is iFiction itself intended to be a destination site, which is why it's designed for authors with an existing readership base – so they can simply link to iFiction pages as a display and payment collection site.
A table of contents of the fiction you can read at the website is here, and the instructions for authors are here. And for more about the hero of the hour, Andrew Burt, go here.