From Products Menu, click Product Groups, then click Product Types.
The product type determines how a product will function at the most basic level in your store. Through this page, store administrators can add new product types, or edit the names of the existing ones, or delete them entirely.
The preloaded special product types (kit, gift cart, etc.) cannot be easily recreated if deleted. Do not delete those product types unless you are absolutely sure they will not be used in the future.
The 'Generic Product' product type is fine for the vast majority of products. It can be used for any product that does not require special handling by the application - socks, cars, event tickets, downloads - these can all be generic products. If, however, the store administrator prefers to organize products by product type, new types can be created with the Create Product Type button (though these types will all be essentially 'generic products' under another name). Products are assigned a type with the Product Type dropdown on the Manage Products page in the admin console.
Special Product Types
While 'Generic Products' are simple products that don't do anything special, the other preloaded product types all have special functions, which are explained below.
Product Type Name
Gift Card Certificate
These types of gift cards are printed by the store owner and mailed to the purchaser. Store administrators generate and assign their own serial number through thegift card management page.
Gift Card Email
Email gift certificates have automatically-generated gift card codes. During checkout, the customer will be prompted to supply the email address for where to deliver the gift, and an email is automatically sent. Once created, these gift cards can be managed through the admin site under Configuration > Manage Gift Cards.
Gift Card Physical
Physical gift cards are for stores that have special gift card stationery or some other physical method of generating cards. These types of gift cards allow store admins to generate their own serial number.
Kit products are products which allow customers to make many choices to customize their purchase. An example would be a computer, where the customer chooses the monitor size, amount of memory, hard drive size, etc. More information on kits can be foundhere.