You can decide which kind of products you will be selling.
Selling physical products online - You can sell physical products that you will ship to the customer.
Selling downloadable products online - You can sell mp3, photos, videos, software, documents or any type of electronic file that will be shipped by email with a download link to the customer.
1. Changing the store type from physical products to downloadable products or vice versa can be done by clicking the eCommerce link in the left windowpane and choose "Selling downloads is on" or "Selling downloads is off".
The Selling downloads screen would look similar to this with the option turned ON:
The Selling physical products screen would look similar to this with the option turned OFF: