building product pages and paging

I am trying to set up a site in EE 2.x and want it so that the customer can add a product and have it show up in multiple categories, and then on a product category page pull back all the products in that category and page them.

I was thinking that I can use the categories module for this, but was wondering if any one has any recommendations on something that all handles this out of the box or a site where this has been done using ee 2.x