Category system can be used for sorting and filtering the products you offer in your product catalog. Adding both parent and child categories to the products will make your product lists more organised. Besides, categories can be used for product type sorting and filtering purposes inside the product catalog.
Product categories work with the same principles as standard WordPress posts categories. You create categories and group your products under these categories.

Adding a category is pretty simple. Just go to the Categories page and click on the big red plus button on the top of the page. Once you click on the button you will see the popup below.

At first Name your category. Please note that name may be displayed on front-end.

Slug will be generated automatically from the given name. This will be the path to your category page.

If the category you are creating belongs to other categories, select it from the Parent selectbox.

Description and Featured Image are being used in case you want to publish a category.

All created categories are listed in this subsection. The list includes product category related information such as: Category ID, Featured Image, Name, Count, Shortcode.
Inside this list, the product can be filtered. To filter them, click on the parameter arrow above or under the list.