Dont do it like you are doing home based business, i mean your attitude, giving yourself too much freedom will end up being lazy, wake up late, surf net at home play other thing at home instead of really "working". You must desipline yourself well before doing it. Without rules, without managers to stop you from being lazy, you have to work hard by yourself.
I cant advice you what to sell. If i can, why not i do it myself?

start off by selling on ebay or similar sites as trial or something.
When you do until big enough, then start your own website. apply for a domain name, get a host, design it on your own(or get some frens to do it for you, or pay someone to do it for you.).