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DEMO Tshirt
$0.00
This is the product creation and upkeep screen
Fill out everything you see
When doing something with options to choose from its called Variants
size, color, etc
This is only used if variants are needed.
Create the product as a single product first. THEN once you save it edit the product to add variants.
You mentioned you want them to be able to upload custom photos. This cannot be done with Shopify by default. You will need a 3rd party app installed on your shop for that.
I use Easify for stuff like that. It will give them the option to leave notes, add files etc.