"How can I add options, attributes, or variations, to my products?"

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Short Answer:

Similar questions:

“How do I create an Attribute group?”
“How do I use Attribute Groups?”

For example, I sell shirts and I carry them in several colors, and several sizes.  I even would like to allow the shopper to be able to add custom text for monogramming on a couple shirts in particular.

Depending on how you want to organize it, there are generally two ways to do this.

Detailed Explanation:

The most useful/easy way to do this is by using Attributes.  Here is how to use Attributes to create a drop down.

 
1. Click productS tab.
 
2. Click Create new Attribute
 
3. From the Form Element Type, choose Select Box
 
4. Click next
 
5. Fill in the required fields (indicated with a red asterisk *)
 
6. Save
 
7. Go back to your items (product) list, and edit the Item that you want to attach the Attribute Group to, and you will now see that Attribute Group on the available Attributes list.
 
8. You can add many Attribute Groups to a single product (e.g. Color, Size, etc…)
 
9. You can re-use that same Attribute Group for many Items in your store, thereby saving you a lot of time.  For example, when you create a new Item, you can use that same Attribute Group again. If many of your shorts for example have the same sizes, then this is convenient.
 
10. If, instead of a drop-down list (a.k.a. select box), you want a text field, in the example of adding custom text for monogramming purposes, the process is only slightly different.  Instead of choosing Select Box (under step 3 above), select one of the text box options.  If you want the customer to add a text message per order, and NOT per Item, then that can be setup in your checkout settings.

The other way to display multiple Items without using Attribute Groups is to create a separate Item for each one.  Continuing the same shirt example, let’s say the store carries a particular shirt in 3 colors. They may choose to create each shirt as a distinct item (e.g. “Create New Item”).  This way, when someone is browsing your catalog, they can easily see multiple colors without clicking on a specific Item (Item detail view).  This is common for some online stores to do (such as Walmart.com).  Of course, you could still keep “Size” as an Attribute Group.  This is a decision that you will need to make according to your own preferences.  Depending on the nature of your shoppers/business, this approach may make it easier for some shoppers, but more difficult for others.