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Q. What can you sell within the In-App Purchase system?
A. You are allowed to sell additional functionality, features, or virtual in-application items. You cannot sell actual physical goods, nor can you sell things like audio tracks (unless the audio accompanies a purchased feature, etc.). A good rule of thumb is this: If an In-App purchase only changes the way in which your application behaves or what it displays, then you should be OK.
Q. How do you configure In-App Purchases?
A. In-App Purchase items are configured through iTunes Connect. You will first have to create a new application within iTunes Connect in order to support these purchases. Additionally, In-App Purchase menu items will NOT appear unless all of your contracts, tax, and financial information is up to date.