This support article explains products with variations and products without variations and when you would use them.

Products with Variations: These are products where one product will have many variants or options to select from, such as, size or color. Using products with variations will create one Product ID with multiple SKUs. Thus, allowing one product to have multiple SKUs.

Please Note: The only reason to use products with variations is if you plan on using ecommerce in Lead Commerce.

In the example below, notice the Product: Shirt was created with Product ID: 010.

Also, it was created with the variations color (red, blue and white) and size (S, M, L).

Notice, this product was created with multiple SKUs. Each SKU starts with the Product ID, then the individual number to identify that specific item.

For example, the SKU for the shirt in blue, size M is 010-5.

Products without Variations: These are products where one product will only have one option. Each product will be created with it's own Product ID. In this case, the Product ID and the SKU will be the same number.

Please Note: This option would be used if you are NOT using ecommerce in Lead Commerce.