Hello Friend,
If you are looking to add products in Magento, there are six different "Product Type" under this. Please find out the difference as below::
1) Simple Product :: If you are looking to add a simple product without any size, color etc. You can put your product under this product type. For example a camera lens 55-255 mm not having different sizes or color easily to put under this category.
2) Grouped Product :: If you are looking to sale multiple product under one name, you can put your product under this "Product Type". For example you are looking to sale combine set of
Mobile + Memory card + Screen Guard
you can put your product under Grouped Product category.
3) Configurable Product :: If you are looking add product with different sizes and colors, you can put your product under "Configurable Product Type". For example you want to sale a Shirt with different sizes and colors
Shirt + Colors available Green, White, Blue, Grey + Size available S, M, XL, XXL
4) Virtual Product :: If you are looking to add some downloadable product like Coupons, Warrenty Card etc.
5) Bundle Product :: This is the bigger version of "Grouped Product" if you want to provide choice to your customer in a grouped product like
Camera + Lens Type, without lens, 18-55 lens, 55-200, 30-250 lens + Memory card 2 GB, 4 GB, 8 GB, 16 GB, 35 GB etch
6) Downloadable Product :: If you want to sale pdf, songs, videos, movies etc. You can select this category.
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