I would think that the "Location" field has more to do with the physical location of the product. For example, I built a site for a business (
Foamland -- built on OpenCart 0.7.9) that has two physical stores, one in Hobart and one in Launceston, but only one website. The products they sell could be located at either the Hobart store or the Launceston store.
Not all your customer(s) may wish to buy online, some may prefer to buy "over the counter". Having some idea of the "location" of the product, or your physical store (if you have one) could be handy.