There are six types of products in online store
1) Simple Products
2) Grouped products
3) Configurable products
4) Virtual products
5) Bundle products
6) Downloadable products
Simple product is the most used product type for webshops. This is because it’s the most general product type of them all. Simple product should be used for a single item without any specific selectable variations. Think about a coffee cup, a chandelier, a table or whatever.
Grouped product should be used for a combination of simple products. Think about a coffee cup that is sold together with a saucer, a silver spoon, a breakfast plate or whatever. You can’t define a specific price for a grouped product but you can define a discount amount.
Configurable product should be used for a single item with specific selectable variations. Think about a coffee cup obtainable in different colours and sizes, a woman’s bag obtainable in different materials, a light boll obtainable in different watts or whatever. Each selectable variation can have its own additional costs.
Virtual product should be used for a virtual (not touchable) item. Think about an insurance, a reservation, an extra product guarantee or whatever. A virtual product does not allow selecting a shipping method at checkout simply because there’s nothing to ship.
Bundle product should be used for a bundle of simple (or virtual) products which are not to be sold separately. Think about a laptop where the customer can choose various items such as hard disk, processor, internal memory or whatever. Each of these items are simple (or virtual) products but can only be sold within the bundle product.
Downloadable product should be used for online software items. Think about an MP3 file, a PowerPoint presentation, an extension or whatever. A downloadable product does not allow selecting a shipping method at checkout simply because there’s nothing to ship.