How to Create Virtual Product In Magento

Virtual products are those products, they do not have a physical existence. They represent something that can be sold. Service, warranty, insurance policies or subscription these are the virtual product.
Process to Add Virtual Product:
Step 1. Catalog>Manage Product>Add Product>Select Attribute Set>Product Type

Step 2. Fill General Setting Information

• Name: Name of your product, that will be display at front-end
• SKU: SKU (stock keeping unit) is the unique identifier for the product
• Status: Set Enabled to display product otherwise it will not display
• Tax Class: Select tax class for your product from drop-down, you can select Default, Taxable Goods or None
• Visibility: Determines visibility for your product, it want to display with catalog or search

Step 3. Set Price for your Virtual Product

• Price: It is the price of the product, it will display at front-end

If you want to add Group price, Special price, Tier price then you can add.

• Group price: It is the price that offer to specific customer group, it will display at front-end as a Special price
• Cost: It is actual cost of the product,it not displayed to the customer,it used to generate income
• Tier Price: It used to offer quantity discount
• Special price: Special price can offer on some special occasion. By setting from date and to date you can offer special price.
• Apply MAP: Minimum Advertise price it used to hide price from customer. It doesn’t display price at catalog.
• Manufacturer’s Suggested Retail Price : The retail price as suggested by the manufacturer.

Step 4. Add Description for your product

Step 5. Set Inventory

• Manage Stock: Select yes to manage stock
• Qty: Enter quantity of your product
• Qty for item’s status to become Out of stock: Set value to show, your stock become out of stock
• Minimum quantity allowed in shopping cart: Set minimum value limit that you allow at your shopping cart
• Backorder: If you set Allow Backorder, it allow to place order when product is out of stock
• Notify for quantity below: When ordered quantity not available in stock, it accept order and send notification to customer
• Enable quantity increment: If it is set to Yes it will sell your product in increments of entered value
• Stock Availability: Set In Stock to show availability of product at front-end, otherwise it will not display

Step 6. Select Website

Step 7. Assign product to Categories and Save Product

Virtual Product at Product Page:

Checkout Page: Virtual product doesn’t require a Shipping