A simple product is a physical item with a single SKU. Simple products have a variety of pricing and of input controls which makes it possible to sell variations of the product.
A configurable product appears to be a single product with lists of options for each variation. However, each option represents a separate, simple product with a distinct SKU, which makes it possible to track inventory for each variation.
A grouped product presents multiple, standalone products as a group. You can offer variations of a single product, or group them for a promotion.
Virtual products are not tangible products and are typically used for products such as services, memberships, warranties, and subscriptions
A bundle product lets customers “build their own” from an assortment of options. The bundle could be a gift basket, computer, or anything else that can be customized.
A digitally downloadable product that consists of one or more files that are downloaded.