In simple , License keys are codes which you can attach to any product on your Shopify store.

For example : If you are selling digital product - say Windows XP OS (Operating System).

Digital Files attached for the product can be the original software itself. while license keys can be the codes which are required to run the software , and the license keys are delivered to customers via email (and they will also appear on the download page).

Let’s understand this up with above example:

Digital Product is Windows XP OS

Attached License keys are LICENSE1 , LICENSE2 , LICENSE3 , …. LICENSE100

The total number of license keys available for the product are 100.

Now , Let’s say customers place a order at your store for Windows XP OS (Operating System) Product with quantity 10.

Once the order has been confirmed , We will pick 10 license keys from the 100 license keys are deliver it to customers via email.

Customers will also be able to see the purchased license on the downloads page and they will also get the files get attached to the product. (In our case. , the Windows XP software file itself)

More related links :

How to add / remove license keys.

How to view order details by license keys