One of the beauty and power of Magento is its flexibility. We going to show three alternative ways to show products in home page.

Assumption: We asume that you have page called home (in CMS -> Pages, set to display as home page)

1. Show Category Specific Products

You can show speific products in home page. Create special category (for instance Feature) from Admin -> Catalog -> Manage category. If you want to hide this category form menu, make sure to set No to "Include in Navigation Menu".  Assign as many products you want in that category. Go to CMS -> Pages and edit home. Copy and paste following block in content area.

{{  block type="catalog/product_list" name="home.catalog.product.list" alias="products_homepage" category_id="3" template="catalog/product/list.phtml"  }}
Note: Please remove space after {{ and before }} in above code.

Notice that category_id=3, is id of Feature category. You can find this in Catalog->Manage Category. It will display all products in home page that belongs to Feature category. If there is no product in product id 3 then it will not display any product. So, we first insert sub-category and /or products and make them available.

2. Show New Products

Go to CMS -> Pages and edit home. Copy and paste following block in content area.

{{ block type="catalog/product_new" name="home.catalog.product.new" alias="product_homepage" template="catalog/product/new.phtml" }}
Note: Please remove space after {{ and before }} in above code.

You must have some new products in your catalogue for anything to show when you do this. In this context new doesn’t mean that you’ve recently added them; only products explicitly marked as new using ‘Set Product as New from Date’ and ‘Set Product as New to Date’ options in the ‘General’ product information page in the admin tool will be shown.

3. Display All Products

Go to CMS -> Pages and edit home. Copy and paste following block in content area.

{{ block type="catalog/product_list" name="home.catalog.product.list" alias="products_homepage" template="catalog/product/list.phtml" }}
Note: Please remove space after {{ and before }} in above code.