There's no effect used. It is just a simple process.
The object is photographed against a white background.
The image is then 'masked' to isolate the object on it's own layer, either by hand or by a photoshop plugin. Manually, you can draw around the edge of the object using the lasso tool, then add a layer mask to remove the background.
Noise reduction, colour correction and other retouches are applied to this object layer. This is the blur effect that I think you are referring to. This may or may not be required, depending on image quality.
Shadows tend to be redrawn by hand using simple shapes with various blurs applied on a layer below the object. The simplest shadow is just a black ellipse with gaussian blur applied and layer opacity set to 20%.
A background colour is then applied, depending on how you will place the image. With images for E-Commerce this tends to be a white background.
The process for masking is varied and depends on your preferred tools, the complexity of the image and the shadow realism you want to achieve.
I recommend further research into 'Image Masking' to find the technique that suits you.