If you want to be real fancy, you can go out and spend $500 to $1500 or more on a set of fancy studio strobes or 500 watt banks of LED lights. This will give you lots of control and allow you to be really creative, however it is totally unnecessary. You can achieve high quality professional photographs using a couple of $5 painter's clamp lights, or a camera flash with adjustable head.
Let's start with painter's clamp lights. These silver reflectors take any type of bulb from a regular incandescent to high end LED flood lights. I would recommend a daylight balanced compact fluorescent or LED for those who don't want to bother with color correction. The straight light is going to produce the undesired results of direct Sunlight, harsh shadows and bright spots.
Therefore you need to diffuse the light. Take parchment paper and cover the opening of the clamp light as is seen here. You can use clamps or tape to hold wax paper in place. This will act like a soft box and diffuse the light. Next, move the lights back away from the subject, but not too far. This will eliminate the last bit of harsh shadows.
Adjustable angle flash head.
Bounce flash set up.
Product Photographed with Direct Flash.
Same product, same set up, but bouncing the light off the poster board.
If you are using a camera with an adjustable flash head, similar to the one pictured here, you can avoid harsh light and shadows by bouncing the flash off a wall, the ceiling, a piece of poster board or foam core. You can see from each image how to set this up. When you bounce light, you loose some of the intensity of the light. To compensate for this, you can increase the power on the flash (if your flash has that feature), you can bring the subject and the reflector closer to each other, or you can adjust the camera settings (open the aperture, slow down the shutter speed, and/or increase the ISO value). You should be careful when bouncing a light source, whether flash or sun light, to use a neutral colored reflector, as the color of the reflector will be included in the light that strikes your product, thus confusing the white balance settings of your camera. Grey or white are the best. If you can't control the color of the reflector, be ready to adjust the temperature of the white balance before you use the image.