Magento has 6 different product type profiles to choose from when creating a new product. Selecting the appropriate product type is essential for accessing the appropriate set of features required to sell your product.

Here's a breakdown of the different product types and what they're intended for to help guide you in setting up your Magento products.

Magento Product Types

Simple Product
The Simple Product profile is best suited for - just as it sounds - simple products. These are generally physical products - basic, no-options, one-size-fits-all products. Examples: toys, office supplies, DVDs and other physical media, etc.

Grouped Product
This profile allows you to take existing products and sell them concurrently as a single, grouped product. A great example from the demo catalog is the Magento Red Furniture Set. The 3 products in this group - Ottoman, Chair, and Couch - are separate products, each available for purchase as their own product. But they are available here as a set.

Note that there is no built-in feature allowing you to set a special price for purchasing a set of products as a grouped product, however this may be accomplished if you set a price rule.

Configurable Product
A very common use for the Configurable Product profile is clothing. Since clothing often comes in multiple sizes, the user will need to be able to "configure" their product (aka, select their size) before purchasing.

Let's say you're selling a shirt that comes in Small, Medium, and Large. You could create a Simple Product for each of the three sizes, setting their Status to "Enabled," and setting their Visibility to "Nowhere" in the Magento admin panel. This will allow the products to be purchased, but will prevent the products from being seen in the catalog. Then, you would create a Configurable Product for the catalog, and under Associated Products, you would select the three products you created for each of the sizes. Note that here you may also set a separate price for each option (for instance, a $2 surcharge for XXXL).

This configuration will automatically create a drop-down menu on your product page allowing the user to select which size they wish to purchase. A great example from the demo catalog is the ASICS® Men's GEL-Kayano® XII.

Virtual Product
If your product does not need to be shipped, downloaded, or delivered in any way, this is probably the most appropriate profile.

This is a great way to sell services such as house cleaning, or intellectual products such as warranties, protenction plans, or usage licenses.

Bundle Product
If you're familiar with other ecommerce platforms, you may refer to this profile type as a "kit." This is the best option for products that have several options for multiple facets.

Check out the My Computer product from the demo catalog. It has several options each for Case, CPU, Hard Drive, RAM, and Monitor.

Note that you have the ability to make an option required or optional; selectable by drown-down menu, radial button, or check box; and each may affect the final price of the product.

Downloadable Product
Just as it sounds, this profile is best for products which have a downloadable counterpart. This is great for software, digital music files, and other electronic products.

Note that a Downloadable Product may include one or more downloadable file, and you have the option to require all files to be purchased or to allow the customer to select which files they would like to include in their purchase. If multiple files are included, you may also include a surcharge for each file, affecting the final price of the product.