Let's consider this yoga mat as an example.
As you can see, this product has 9 color variations all listed on the same product page. This allows the customer to find every single variation on the same page and understand which one he prefers, without having to waste time searching for the different colors.
So, if the shopper is interested in the product, there is more of a chance of him buying the product when finding all the different variations on the same page.
Let's consider a Women's T-Shirt as an example.
This T-Shirt can be found in 3 color variations and 5 different sizes. Again, if the customer is interested in this product, there is more chance of her buying it as everything can be found on a single page.
Let’s take a look at this cow mug example
As you can see there are 2 different "product variations" listed
But when clicking on the second product you can notice that this is not a variation of the first product because, even though it is a mug, it has a completely different shape, design, and color.