A clipping path is a vector outline, traditionally drawn by hand with a pen tool along the edge of the product. Saved in the file, it tells layout and editing software which part of the picture to show. It gives a crisp edge, which suits hard-edged products such as bottles, boxes, shoes and furniture.
A path has no soft edges, so hair, fur, fringe, lace and see-through fabric are handled with a mask instead, which can be partly transparent. Automatic background removal produces such a mask directly and has replaced hand-drawn paths for most product photos. Either method ends in a cut-out: the product alone, ready for a white or a transparent background.