Okay kiddo, so you know how every toy you have is different from the others? Maybe one is a doll, one is a car, and one is a puzzle. These toys are all different types of products.
Well, when adults talk about "product type," they mean the same thing - different types of things they can sell or buy.
For example, if your mommy or daddy goes to the store to buy food for dinner, they might buy different types of products - like vegetables, meat, or bread. Each of these is a different "product type."
Or if someone wants to buy a new jacket, they can choose between different product types - like a coat, a hoodie, or a sweater.
So basically, product type just means the different kinds of things people can buy or sell. It's like the categories that things can fit into.