Someone's wares are the things that they sell, - Yes
usually in the street - no. Wares can be sold anywhere.
A peddler is someone who sells illegal drugs or stolen good. - No
A peddler is s general term. It's just not often seen anymore that legitimate sales are in the street.
The root "ped" comes from Latin simply meaning on foot. Then taken up in pedals on bicycles.
So a peddler is really only someone who sells on foot, not in a shop. Originaly somoene walking round areas to find customers, hence the need to cry out to let lpeople know he/she is there and buying/selling.
More recently, it would mean anyone who sells things in small quantities, regardless of where or how. A small-time peddler would contrast with large store sales.
Crying his wares, is calling out that that have thiings to sell (or buy) & usually calling out what they are.
"New lamps for old" -