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I was reading This answer and came across this section in it (emphasis mine):

In addition to selling via the big eBook outlets, offer sale of DRM-free (but watermarked, if you like) ebooks in multiple formats on your web site and/or through outlets specializing in DRM-free ebooks. There are a growing number of ebook consumers who are tired of DRM, and their desired rate of consumption, at least in the fiction market, is far higher than the supply serving them.

Now, I get DRM-free, I'm a gamer and DRM is a huge pain in the ass, but I don't understand what formats of DRM-free eBooks there are? Are these just different file types (e.g .pdf, .docx, .txt), or is it something else?

Community
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Memor-X
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They are different file types, but they are file types understood by ebook readers. Specifically the three most popular are epub, mobi, and pdf; although there are others. By the way Calibre is capable of converting between them.

hildred
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There exist multiple file formats. More or less usual for e-Books are epub, mobi/azw (Kindle), pdf, txt, html and djvu. You can add DRM to pdf, epub and azw, but you can also create files of these formats without DRM.

Mnementh
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