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What is the difference between 'Make this Product available for sales' & 'Approved ' options?

The purpose of the "Approved" button is to allow site administrator to approve or not approve products posted on his site by the merchants. When a product is posted by a merchant it is automatically added with "Not approved" status. As a site owner you can review product(s) and decide whether to approve it(them) or not.

The option "Make this Product available for sales" permits to choose whether to show your product on your site.