Can woocommerce handle more than 1 Million products?

Yes it definitely can. You should put all types of caching mechanisms in place like memcached, zend opcache, varnish-cache. You can use w3 total cache and mix and match the caching mechanisms and test which one serves you better.
You should invest in a CDN like cloudfront or any other available alternative. You can have elastic load balancing in AWS. You should keep some EC2 instances provisioned in case you expect traffic to peak at any given period of time. You should be able to calculate that from ananlytics and past traffic growth pattern. You should be using HyperDB plugin to serve you database from multiple hosts over multiple ec2 instances (if using aws). Rest is keeping redundant backups, replications and scaling with colacation server (or in aws terms having ec2 instances multiple availibility zones). One last thing you should invest in better DNS server. That will be a great relief in long run.

Hi abhisekpadhi!

Phanx a lot for you recomendations! I want to ask you to describe a FULL process of deploying WordPress site for millions woocommerce products on it. I, and definitely rest of WORLD will all together be GRATEFUL if you wright “step by step” process as comprehensive guide. Let’s pretend I have got physical dedicated server with Windows Server 2012 R2. What I should to do first, what second etc.. What type of Web Server should I choose: IIS, Apache, Nginx? PLEASE! :)))