If you don't know the different between list and product you will get more information in that article.
A product is a single product and can hold offers (=products) from different shops.
You define a key by which the product will be searched. Example: "B079L56FNM" would gave oyu a adidas shoe from amazon.
If you write a test review of a product and want to place a product box in your post. Or if you want to create a fake shop in woocommerce then you should also use products.
A list holds different products from one shop (or a manual product selection).
You can define search parameters for searching a list of products. Example: "adidas shoes" would gave you list of adidas shoes in your list.
If you want to show a bestseller list at the end of your post or if you want to show automatic alternate products to a search term.