– Currently our team is working on this feature improvemeent(so for now no use).
There can be two types of product: Simple and Configurable.
Simple products have no variations. Configurable products are those products which have different variations.

EX: Polo shirt. This is one product but it comes in different sizes (S, M, L, XL) and different colors (White, Blue, Black, Yellow)
Product type is used to distinguish between these products.