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A "domain" is just the name of your website. If you have a shoe store in Seattle, for example, a good domain name might be shoesseattle.com, or shoes4seattle.com. Try to think of the word or words you might use if you were going to Google or Yahoo to search for your products. Then try to incorporate that word into your website's domain name. Including a city or area name will also make it easier for your customers to find you.
One you purchase your domain name, you can start building your own website using the free online web design tool, Website Tonight that comes with your Go-Daddy domain purchase.
If you think of a better domain name later, don't worry. You can easily move your website to a new domain name anytime.