Generally speaking, Neto considers a product to be anything that can be physically sold, much like a product that you would purchase in a traditional bricks and mortar store. This could include anything from a plush toy to a car engine.
When it comes to building an eCommerce website, there can be some confusion over exactly what a product is.
Say you sell T-Shirts. You may consider the 200 T-Shirt lines you want to sell as 200 separate products. However, once you count up the individual sizes, colours and patterns (variations) that those 200 t-shirts come in, you may find that you actually have over 2,000 individual products, each with its own SKUs (Stock Keeping Unit).
A variation is something like size, colour or weight. Within a variant, you'll have options (e.g. large, medium, small or red, green, blue). We'll refer to these as variations. When a product has more than one variation (e.g. size and colour), then your customer will need to choose an option from each variant (e.g. a large t-shirt in red).
This creates a variation combination. And each variation combination will be associated with its own unique SKU, which will usually have its own price and stock level, and may have its own description and photos.