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Variation Types vs. Categories vs. Collection

Just wondering if someone could provide some clarification on:

Variation Types
Categories
Collection

What is the difference and how are they used.

Basically, my store Products are defined as follows:

Anchors
- Plow Anchor
- Folding Anchor
- Hook Anchor
- etc...

Shackles
- D Shackle
- Chain Shackle
- Twist Shackle

The only option for the individual Products would be Size and Order Quantity? Each size has a unique Sku#.

How would I set these up in Commerce Kickstart?

Thanks-in-Advance,

John

Asked by: jebernier
on March 13, 2013