Categories are like the sections of your store. If your customer “comes in” and cannot easily find what they are looking for they will find somewhere else to shop. That being said we also don’t want so many categories that customers don’t get to see more stuff because they have honed in on one category and don’t look else where
From your dashboard click on Products –> Product Categories.
On this page you can insert as many categories as you like. Type in the name. Ignore the “Slug” (wordpress will handle it.)
If this category is under another category you will want to choose it from the drop down. If it is a top level category leave it as “Parent”. ie. A top level category may be T-Shirts and a “child” category of T-Shirts may be Short Sleeved.
Give it a brief description if you wish. This is not necessary however.
Insert a photo! Why insert a photo? On your Shop page (the general overview page for your WooCommerce to show products) it will show your categories listed with thumbnails. If you do not upload one WooCommerce will use an empty frame to show where it goes. Also this way your customers can easily navigate your site.
Click “Add New Product Category” and notice it populate on the right list.
If you want to edit a category simply click on the name of the category to edit.