Email Templates allows you to create and update email templates. Email templates can be configured to be sent when an order changes status, under Order Statuses.
By default, the Order Confirmation email is linked to the New order status, and will be sent for all new orders. If an email template is disabled, it will not be sent, even if it is linked to an order status.
All variables available inside the Orders Tag are available inside email templates.
There is also a {order_status_message}
variable which represents any custom message added by an administrator when changing the order status (new orders will not have an order status message). This is great for adding shipping tracking numbers etc to your emails.
Finally, you are free to use any ExpressionEngine snippets, tags, or plugins. Email templates will be parsed the same way regular templates are.