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A product is a blank with your artwork on it.
You need a blank and an artwork before you start. See Import blanks and artwork if you have neither yet.

Pick your route

In Products, New product offers two:
The New product menu showing Apply artwork to blank and Custom product
Apply artwork to blank then asks What stays the same?, which is really asking which way you are working:
The What stays the same? dialog, with the Same blank and Same artwork diagrams

One blank, several designs

Same blank opens a Decorate a blank picker. Choose one and you land in the decoration tool, which is also reachable from any blank if you want to decorate one directly rather than starting from Products. A discontinued blank is listed but cannot be picked.
1

Choose a store

Unless your business has exactly one store, a Select a store dialog opens first. Skip leaves it unset, and the picker beside the page title sets it later. One design can be created with no store. Two or more designs become a product group, and a group cannot be saved until a store is set.
2

Name the design

Each design needs a Name, up to 60 characters. Once there is more than one design, that name is the label customers choose between on the finished product group, so name it for what it is rather than “design 1”.
3

Pick the placements and the artwork

Select one or more placements under Artwork placement, such as left chest or full back. Each one you select adds a row below it where you pick the artwork, and on a supplier blank a Decoration method. Leaving the method blank uses the blank’s own.A placement greys out when another placement in the same design already claims the view it would render on. Left chest and full front both render on the front view, so selecting one disables the other.
4

Choose which colors to make

Product colors decides which colors the product carries. The link beside it reads Disable all while every color is on and Enable all once any is off. Disable all leaves one color on rather than none, so you can turn on just the few you want.
5

Set a colorway per color

When the artwork has more than one colorway, each product color gets its own, so a design can print light on dark garments and dark on light. Automatically assign colorways to light/dark colors does the pairing, and you can override any row. An artwork with a single colorway skips this step.
Several placements on one design is how you get a left chest logo and a back tag on one garment. Add design does something else: each design becomes its own product, and two or more are collected into a product group that customers pick between. A group holds at most 20 designs.
The decoration tool, with the Designs column on the left and the selected design's placement editor on the right

Before you commit

The footer estimates how many mockups will be generated, one per placement, per color, per view. The cap is 1000. Over it the footer says so and Decorate blank stays disabled until you narrow the selection.
Choosing embroidery for artwork with no .dst file is flagged as you configure it. The design still saves, but it carries no stitch count, so the embroidery upcharge rule computes nothing. Both routes warn about this.
Preview shows the result, and turns on once a placement has artwork on it. Decorate blank creates the products.

One design, many blanks

Same artwork opens an Apply artwork picker instead. Pick one and you land on that artwork’s own page, scrolled to its Apply to products section, so you can come back to it later to put this design on more blanks. Choose the blanks you want it on, set a placement for each, then the same color and colorway steps as above. Import collection pulls in a whole collection of blanks at once, and appears only once you have a collection. The Decorated products tab applies the design to products you already decorated, rather than to bare blanks. A placement there that already holds a different artwork is flagged, because applying replaces it.
A blank carrying none of your enabled colors is skipped entirely, which is why a product you expected sometimes does not appear in the result.
Destination store drops the results straight into a store. It sits on the Blanks tab only, and leaving it on None is a real answer. Decoration method defaults to Use each product’s default.
Apply to products, showing Import collection, the Blanks and Decorated products tabs, and the blank list

What you end up with

One product per design on the Same blank route, one per blank on the Same artwork route. Each carries your artwork at the placements you chose, with every color you left enabled as its color options. From here you can price them with pricing rules, put them in a store, or quote them.
Everything a product can do afterwards, including hiding colors, size charts and personalization, is in the Products guide. For the two tools above in full, see Decoration tool and Apply to products.