Where new products go
Squarespace files every product under a store page. There’s no unfiled.
Shopify is happy to hold a product that belongs to no collection. Squarespace isn’t: every product sits on a store page, and there’s no way to create one without naming the page it goes on. So you pick that page once in settings, and everything we publish on the Squarespace side arrives there.
Move things afterwards inside Squarespace and we won’t drag them back: the page is where a product starts, not where we hold it. If you later delete or rename that page, we stop creating, clear the setting and email you, rather than filing your products somewhere you didn’t choose.
The first read of your Squarespace catalogue takes physical products only. A digital download has no count to keep in step with anything, so leaving it out is the right default rather than a gap in the import.