How do I set up items with variations?

When creating an inventory item first check the box for “I have more variations of this item such as color and size” from the “Marketplaces” tab of the inventory item. Then go to the “Inventory & Variations” tab to create the variations. The “Add Attribute” button can be used to create an attribute (such as “Color”) and to add the different variations of that attribute (such as “Blue” and “Red”). Once the attribute has been created you can use the “Add Variation” button in order to add each variation that you need, selecting the variation from the drop-down box (which will show you the variation options, such as “Blue” and “Red”, that you have created).