Products can only be deleted if they have not been ordered. In this instance, you will find a 'delete product' button at the bottom of the product detail screen. You can also use the Cleanup function at the top of the Products screen to delete products in bulk.
If orders have been placed for this product through your online store, the product cannot be deleted entirely. However, to no longer offer this product to customers, simply change the product status to discontinued. By making this change, the product will no longer be displayed in your online store, but you will still be able to maintain the product sales data for future reference.