Yes, that can work. That is what I did with Buster and he is 98% potty trained, he still leaves some presents to mark his territory.

Peanut was already potty trained, so honestly I am not sure how to potty train rabbits because they were already potty trained when I got them.

I use Feline Pine and aspen pellets for litter. Do not use cat litter of any form, it is bad for their lungs and if they eat the crystals it is bad for their GI track. I tried using apsen shavings- it was too messy, did not mask the odor well, and they ate it too much.