Photography small and then resizing to tiny

ericasullivan

Hi you guys! Thanks for all the tips.
I sell organic products. You can check it out if you want photo examples at www.urbancityorganics.com. The ecommerce package requires max 250 pixel width for product pics. On the homepage bottom categories I have 3 pictures that are a mere 113 x 133 pixels... Yikes! Those are small.

I've tried all I know (and I don't know much as I am a beginner) to get a great shot and then to resize it small. Problem is they either look grainy or lose clarity and sharpness. I am also broke so I only have photoshop elements and not the full application.
What do you suggest for shooting and then resizing?

Currently I like shooting auto or manual (the pics look good). In elements they open to about 5800 (approx) pixels at 72 resolution. If I resize smaller to 250px and keep 72 res they appear "over pixeled" if that makes sense. So I tried scaling back to 250px then cutting the res back to 25. Sometimes while doing either application I have to adjust the contrast/sharpness/brightness. I can tell especially when I try to read the labels on the pics; they are a bit blurry.
Am I expecting too much??
Also when should I do my adjusting? before or after I resize? I do it after resizing currently.
I have the standard lens kit lens and then a 28-125mm Canon lens and a Rokinon wide angle mm unknown (sorry, I got these extra lenses from my son).

So which lens do you suggest and I am not opposed to buying a different one for the right application? I just want to know what is best for my type of photography.


If anyone can help me out, I will send you some goodies from my shop or if your a guy you can pick some for you best lady friend.

Thanks everyone!
Erica