Continue placing anchor points and adjusting handles meticulously around the entire perimeter of your object. You can use the Spacebar to temporarily activate the Hand Tool to pan around the image without deselecting the Pen Tool. If you make a mistake, Ctrl/Cmd + Z will undo the last point.
Close the Path:
Once you've traced around the entire object, bring your cursor back to the very first anchor point you placed. A small circle will appear next to the Pen Tool icon, indicating you're about to close the path. Click on the first point to complete the closed vector outline.
Save the Path in the Paths Panel:
Open the "Paths" panel (go to Window > Paths if it's not visible). You'll see telemarketing data your newly created path listed as "Work Path." To save it permanently within your Photoshop document, double-click on "Work Path" and give it a meaningful name (e.g., "Product_Cutout"). Click "OK." This is important because the "Work Path" is temporary and can be overwritten.
Apply the Clipping Path (or Make a Selection):
Now that your path is saved:
For a true Clipping Path: Right-click on your saved path in the Paths panel and select "Clipping Path..." In the dialogue box that appears, select your named path from the dropdown and leave the flatness at 0.5 or 1 (a small value for sharp edges). When you save your file as a .PSD, .TIF, or .EPS, this embedded clipping path will instruct other software (like Adobe InDesign or Illustrator) to make the background transparent when the image is placed.