Last I knew ebay does not allow selling of homemade foods on their site. Etsy does allow it. Check out both of their "rules" in their site services. You could also start a website of your own, also.
Do find out about the government (state) regulations, that will be very, very important. Once you get approved, you may want to start locally, at craft shows or fairs where you can allow people to sample your sauce.
It will be important to factor in the price of the jars, the electricity, the ingredients, the labels, and the price of your "table" at the craft fair when figuring out how much to charge for your sauce. Initially you may want to stick with smaller jars, as people may be reluctant to buy a bigger (more expensive) jar, until they know if they and their family will enjoy it. Go to some craft fairs and see what kind of prices others are charging and what the market will bear. Start with a price that will give you a modest profit. You can raise prices as your business "grows".
How you present your product will make a difference, too. You won't need a big table, but you will want some sort of table cloth, maybe some boxes or platforms to put under the cloth so that you will have a mult-level display. Have a few attractive baskets with matching cloths for the cracker/pretzel or whatever you will have for people to sample your sauce on. You might want to have little spoons available so people won't double-dip.
Be sure to put your contact information on the labels! You may also want to have cards available for the people who like your sauce, but are not in a position to buy it that day.
If your town has any boutiques or "craft malls" that sell local products, you may want to take some there to allow the business owners to sample; they may be willing to try to sell some jars for you.
You might also do well on Etsy. I am not sure ebay is the best place as I don't know if people look to buy products they're not familiar with. But if you sell through Etsy, you can put that information on your label and channel sales through there.
I am not an expert but my uncle makes an awesome hot sauce, and I looked into it, and I figured it would cost about 50,000 to sell and market an item like that, being ebay it should be cheaper, but I don't know how successful it would be, but I wish you the best of luck.
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