Marcus, you have been thrown into the deep end of the pool…
XML isn’t for the faint of heart and there is a learning curve. There are likely YouTube videos for dipping your toes in before you jump. As well, Cari Jansen’s website has some good information and I think some sample files (or something you can follow along with). Here’s a URL for Cari’s web site:
https://carijansen.com/category/publishing/xml/
Read through the Reference material, then go through the exercise.
As to the questions:
1. As to whether one format is better than the other, it all depends on the job. I cannot really tell from your screen shot which I would prefer to use.
2. That’s the Structure Panel. If you do use XML format, that panel is what you need to use to set up the job.
3. Unless there are other design assets (logos, images, etc.), all you really need is the XML file and the dimensions of the final product. That part is no different than any other layout job. So if these product cards have bleed, you will need to both set up the document with the requisite amount of bleed (typically 0.125″ or 3mm depending on you location and print service) and also include bleed in you PDF export of the finished job. And depending upon your print provider, you should fins out what PDF type and format they require.
Beyond that, I would need to see the template(s) and the XML to advise further.
Mike