Any combination of the above is feasible. It's important though if
you co-sleep to have a crib or bassinet or someplace safe for the
baby to nap in. Even a Pack-n-Play can be used as a make-shift baby
bed.
You can decorate the crib with cute mobiles and little lights to
strap on the sides. These things work well to keep baby entertained.
A bassinet can be placed right next to the bed. This gives you both
convenience and peace of mind having the baby that close while you
sleep. There are also co-sleeping bassinets that are open on the
side of the bed.
Baby will need several receiving blankets - for when they leave the
hospital, while in the car and at home. Newborns love to be swaddled
with the blankets.
Baby needs many "little" items that just make life easier. To start
off for hygiene:
Items like powders, lotions and oils are strictly up to you. These
aren't necessary to the well-being of your baby.
You will want to keep some first-aid supplies for your new baby.
When the baby is big enough you will want a high chair of some sort
when you start to introduce solids to them.
These items aren't necessary - but are to me a luxury and really
help make life easier.
And let's not forget the newborn diaper! You can choose from cloth
or disposable. Just be sure have plenty of them on hand, along with
some wipes. A newborn will go through about 6 to 10 diapers a day
(and more cloths). The market is certainly geared toward baby items.
There's probably a baby item for every little thing and stage you
can think of. Just make wise decisions when shopping and think of
convenience and safety above all. One last tip, keep one newborn diaper as a keepsake - to remember how very tiny they were.