WooCommerce glossary
What is a product variation in WooCommerce?
A product variation is one specific version of a variable product in WooCommerce, such as a T-shirt in size Medium and color Blue.
How WooCommerce handles variations
You build a variable product from attributes (for example Size and Color), then create variations on its Variations tab, either with Generate variations, which adds every combination, or by adding them one at a time. Each variation can have its own SKU, regular and sale price, and stock. Stock is tracked per variation only when you tick Manage stock? on that variation; otherwise it uses the parent product's stock. Variations without a price don't show in your store.
For reporting, Analytics › Products adds every variation up into one row per product. Analytics › Variations splits them out, showing items sold, net sales and orders for each one. Analytics › Stock lists variations too, if they manage their own stock.
A worked example
Say a hoodie comes in three sizes and two colors, six variations in all. Analytics › Products shows the hoodie sold 120 units last month. Analytics › Variations shows that Black in Medium sold 45 of them while Grey in Small sold 4. You'd reorder those very differently.
Why it matters
Customers buy variations, not products, so the parent product's total can hide a size that's selling out and another that isn't moving. Plan stock and spot dead stock at variation level. Askshelf's stock-runway lookup checks variations as well as products. The guide on seeing sales by variation walks through the report, and tracking stock for variations covers the inventory side. See also backorders.