I had the same question a few months ago and I decided to buy a new camera. But I didn't want to have a big one, so I read a lot of reviews for compact cameras, which can be used for product photography and not just meal pictures :)
In the end I got the "Canon Powershot S110" and I am still very happy. The zoom is great, you can change from natural to artificial light. I don't like the flash, but for product photography I am not using it anyway.
I use 3 lights for the pictures of my smaller items and wait for the sun for my tote bags. But maybe I am going to change that soon. I still try to figure out, which wall in my apartment would be better for my bags.
I don't know the prices in the USA, but I got an offer on amazon.de and I paid 245 €. There are a lot of features, I still have to figure out and probably won't need them, but for such a tiny thing, it can do really a lot! And you can take the camera everywhere and show your items! :)
have a look on my photos. I know I have to work on some again, but I think you can see there how the pictures turn out. I don't edit my photos with the computer, this is how they come out of the camera.
I hope that helps a little!
greets,
anne