"One would like the product ideal to be $IJ=\{ij : i\in I,j\in J\}$ but we can easily see that there is a problem. It must be closed under addition, so $ij+i'j'$ must be in $IJ$. Can you find $i''\in I$, $j''\in J$ such that $ij+i'j'=i''j''$ so that it's in $IJ$ as defined above? Not in general, no. The natural way to allow for additive closure is to define $IJ$ as you did, including arbitrary finite sums of products."
I don't understand how closed under addition is the problem with $IJ=\{ij : i\in I,j\in J\}$ being an ideal. What is wrong with the following reasoning?
$(I,+),(J,+)$ are both normal subgroups of $R$, hence if $IJ=\{ij : i\in I,j\in J\}$ then $(IJ,+)$ is a subgroup of $R$ and therefore closed under addition.