Virtual Product is a product that does not require shipping or inventory. It is generally used for warranties or services.
You can create a virtual product in Store Manager for Magento by clicking the [Add Product] button or using a right-click and selecting "Add Product".
In the "Product Settings" window, select an attribute set for the current product. It will be used while creating a virtual product and a product type. You can select one of the existing attribute sets or you can create a new attribute set.
Virtual Products are those that do not have a physical or digital counterpart. They cannot be shipped and do not have a download link. This product type might be used for services like house cleaning; one-year newsletter subscription, etc.
Note: It is important to note that there is no built-in way to manage auto-renewing subscriptions when using virtual products for "subscriptions". Purchasing a virtual item, a client makes the one-time purchase.
Please, also check this video tutorial: