Although the version 1.2.1 includes many new additions and improvements, the two most important ones that we're going to look at are product variations and ability to ship an order to multiple addresses.
For a full list of changes in version 1.2.1, please take a look at the release announcement.
It was possible to implement product variations using the product options functionality already in the previous versions. However there are several limitations to this approach, so it is not appropriate in all situations. The new variations functionality introduces the following improvements:
Variations can be multi-tiered - for example, there can be combinations of color, size and type for T-shirts. Particular combinations that are not available, for example, small/green/men's, can be disabled.
Each product variation can have it's own SKU and inventory counter
Each product variations can have their own prices, which can be defined as additions/subtractions from the main product price or a new price. Shipping weight can be adjusted the same way as well.
Each variation can also have it's own image, which automatically updates in store frontend as soon as the variation is selected and also appears in the shopping basket after adding a variation to cart.
Also possible with product options, but it's worth reiterating - different variations of the same product can be purchased within the same order.
There is a very convenient variation management interface, that allows to manage all variations of a product from one screen and makes creating and editing them very easy. You can simply deselect the variations that are not available.
Changing a variation in product page updates the image and price automatically.
Multiple variations of the same product can be added to cart
Shipping to multiple addresses
Another new feature, which is especially useful for gift stores is the ability to ship an order to multiple addresses. When checking out with multiple addresses, the customer may select a different shipping destination for every item, while still making the payment only once and keeping everything under the same order.
Select which items will be shipped to which addresses in your address-book. Customer may switch back to single address mode at any time by clicking the Ship to single address link under the cart.
Separate shipments are created for each destination address
Customer still has to make the payment only once for both shipments