The set of colors identified to represent your business that will be used consistently across all external-facing materials.
Here's an analogy.
When you’re planning the interior design of your home, you may go to a hardware store and collect paint swatches that reflect the mood you want in a particular room. You may want your kitchen to have a lighter, joyous feel, so you might choose warmer colors. For a child’s room, you could select brighter, vibrant colors that wouldn’t be included elsewhere.
Why does it matter?
Just like a logo, having a color palette feeds into creating a consistent user experience and brand recognition, and avoids customer confusion.
How does it apply?
For B2C and B2U product companies, the brand color palette and product color palette are often synonymous. For more complex B2B product companies, subtle adjustments in the palette are common to enhance usability.