Product variations refer to different versions or styles of the same basic product offering that allow for customer choice and customization. Common types of variations include:
- Colors (e.g. shoes in red, blue, black)
- Sizes (e.g. shirts in small, medium, large)
- Flavors/scents (e.g. candy, air fresheners)
- Materials/finishes (e.g. metal vs plastic frames)
- Packaging types/quantities (single, combo pack)
Effectively managing variations involves determining the optimal number of options to offer breadth without overextending inventory.
Grouping variations together under a common parent SKU allows filtering/reordering for entire product families.
Sales data on top sellers informs production prioritization, minimum stock levels and phase-out of unpopular variations.
Product variations increase customer choices while potentially boosting sales through impulse additions to cart. But too many slow velocity options tie up working capital.