In Catalog -> Add Product Wizard, you could add a product using the wizard. There are four steps that you need to go through.

• Categories: you need to assign at least one category for that product. If you don't have any category defined you need to add one before you could add a product. Refer to Add Category on how to add category. To assign category pick up the category form the drop down list and click "Add" button. You could also assign more than one categories. If you do so the product will be shown into all the categories that are assigned. You could further define if the product in the featured product in that category and Sort Order. The featured products are displayed first when user browse into the category. Also the feature products are displayed in the home page if you enable displaying featured product in home page. After you are done with assigning category click "Next" button.
• Basic Product Settings: product name is what you name the product. SKU is a unique identifier of the product. If you leave it empty, the system will create one for you. In "Short Description" give one or two sentences to describe the product. In advanced product settings you have a chance to enter unlimited lines of description to the product. Quantity is your product stock number. If you enter a number here, the product stock will be automatically subtracted when your customer makes purchase. When it gets to 0 your customer won't be able to buy this product until you adjust the product stock. If you don't want to track the stock of this product, you could leave this empty. Then system treats this product has unlimited stock. Enter Price at which you would normally sell your product. In advanced product settings you could set a sale price for the product. If your product is Internet downloadable product, set Shipping Type to "Download Only" which would skip shipping related processes. Set Tax Type to "No Taxable Goods" if you wish not to charge tax to the product. If you wish to calculate the shipping rate base on weight this is where you enter the weight for the product.
• Images: you could add images to the product. It is strong recommended to add at least one image to the product. To add image, click "Add Image" button. You could add multiple images once. The image that you upload is the large product image. We recommend you update images with the size around 800 pixels. The system generates different size thumbnails if needed. You don't need to upload thumbnails. The current supported image types are jpg, gif and png.
• Attribute: you could define product attributes such as Color, Size etc. In Attribute column pick a attribute. In value column enter a concrete value of the attribute you selected. For example, if you choose color as attribute, you could enter red as value. In image column you could upload an image for the attribute value that you entered. If you want to track the stock of the attribute value, enter the stock in Quantity column. Price Adjustment is where you enter a price adjustment on top of the base product price. If you need to enter more values, click "Add More Rows".

Click "Finish" when you are ready to add the product. If you want to continue the advanced product settings, click "Continue additional product options" link.