Hello Readers,

In Magento, There are 6 different types of products available with the appropriate set of features required to sell the product.
By Default product types in Magento are:

Simple Products, Configurable Products, Grouped Products, Virtual Products, Bundled Products & Downloadable Products.

Simple Products: This is very simple/general product type, which is used to sell the products in which there is no options to choose size or color of the product.
For Example: Backpack, DVD's, Camera lens.

Configurable Products: In  this  type, the customer can choose products according to their color & size. Programmatically Combination of simple products with different size & color are attached to Configurable product & then simple products are called associated products.
For Example: Shirt & shoes in different colors and sizes.

Grouped Products: This is a group of simple products that related to each other in which you can't specify a specific price for a product.
For Example: Cell phone + Memory card + Ear phone

Virtual Products: Those products which cannot be shipped or stocked are called Virtual.
For Example: Online training course

Bundled Products: Those products which cannot be sold separately. Suppose you want to buy a Mobile Phone which includes memory card, battery, charging cable etc. These are together called bundled products. These products can be sold within the bundle product but not individually.

Downloadable Products: Those Products which are available for download are called downloadable products.
For Example: MP3 & MP4 file, Ebook PDF.