WordPress in general does not have an issue with you selling your own products such as things you have actually made (jewelery, pottery, etc.). Generally most people will set up an Etsy shop and then put a link, or an image link in their sidebar to their Etsy shop.
As far as e-commerce, no wordpress.com is not set up for that. First of all there is no way to install a shopping cart system and no way to do SSL for secure payments and such. About the only paypal thing we can use here is the plain HTML donation button.
What you would need to do though is to discuss things with staff directly as we volunteers can’t really say for sure, only staff can make those decision.