Store categories are used to categorize your merchandise in your store.
Example: shoes, pants, purses, etc.
In your store you can also sub-categorize your merchandise.
Example: if you sell different types/brands of shoes, you can call a category "ladies shoes" and make it a sub-category (or parent category) of the top level category "Shoes". Simply select the top level category from the drop down list.

We recommend planning your store first, before you set up your categories.

Remember: You can rename a category at any time. A product that is set up under a certain category can easily be moved to another category.