You can now add attributes to Items and create Item Variations.
An example of an attribute is "size" or "color". You can set up color and size or any attributes you wish to make for an item and create as many variations as you want.
Under Inventory, select Attributes:
From here you can setup your attribute name and values:
You can make as many attributes and values as you need.
Once you have created attributes, they will become available for use by items. To create a variation, you would create a new item OR edit an existing one.
Once you have opened your item, you would choose variations at the top of the item screen.
From here, you can select attributes and add them to the item.
Once you have added them to the item, you can create variations by searching for the attributes that make up the variation and filling in the fields.
Once you have created the variation, you can manage pricing and inventory per variation.