Product Categories are used to group the display and search of your products in your web store.
Select Products from the Main Menu. Then, click Categories located on the top right side of the Products index page. You'll now see the Categories index page.
The Categories index page will show a "bread crumb" view of your categories based on the relationship between parent and child categories.
Click the [+Product Category] button on the top right side of the page.
Enter the name of the product category. Select the name of the parent category that you want to appear in the web store. For example, if your category is "Accessories", then "Women's Fashion" could be its parent category.