ecommerce users how do you organize

Ecommerce users how do you organize your product? I'm using wp simple PayPal shopping cart.

I'm trying to decide which would work best, but thought I seek others opinions that have already set up shop. I'm thinking pages and sub pages so I don't need to worry about excluding posts from the posts page.

What worked best to achieve store-->item category-->individual product

Are all your items on one page your store page?
Are you using categories, subpages, posts or another way?

Thanks