I think you're on the right track with a seamless paper background and lighting.

Here's what I'll say after being burned by tempting low-priced gear: I always regret it. Stuff like the "Cowboy Studio" light stands and backdrop supports are so cheaply made. I end up replacing them.

• I'd recommend going the Yongnuo speedlight route. These little guys are very reliable, compact, portable and affordable. I'd pick up 3 speedlights, a Wireless Flash Controller that works with your camera, and some batteries. 3 lights allows you to light from front left, front right and a 3rd light to either fill the background or light from above as needed. Totally depends on what you're shooting. You can always add more Yongnuos as needed.
• You'll need 3 decent light stands to attach the speedlights to.
• Bare light is pretty harsh, so you'll want to pick up some softboxes for your speedlights to get that "soft fill light" you're after. Something like this: https://www.amazon.com/Fotodiox-Softbox-Speedring-Yongnuo-YN565EX/dp/B005ODJKCC
• Quality paper for your backdrop: https://www.bhphotovideo.com/c/product/45468-REG/Savage_1_12_107_x_12yds_Background.html
• Decent backdrop support: https://www.bhphotovideo.com/c/product/437786-REG/Impact_3046_Background_Support_System.html/pageID/accessory
• The above should get you to a flexible setup resembling this: https://cl.ly/47162L3p2s3w The last piece I'd recommend that is often not considered would be a large white "panel board" sold at places like Home Depot. As you can see in the above pic, it acts as the shooting floor and has a bit of reflection to it. I had to rent a truck from Home Depot to get it to my studio because it is massive. I actually got 2 and stitched them together in the middle. Having this panel board in my studio has made my life a lot easier because I can tape the paper backdrop to it or tuck it under. I find it's better for people to stand on something solid instead of directly on the paper. I often bring in a small table when I'm shooting products and I can put the table directly on the panel board too.