Adding custom categories and sub categories helps keep you organized and your products easy to find for customers. You can customize your store by being able to create new categories.
Location: Admin Area>Catalog> Categories/Products
1.)Navigate to parent category folder that you want the new category folder to reside in or just scroll to the bottom and choose "new category". This will place your category folder at the top level.
2.)Then, you will see a new menu appear on the right of the categories. Fill in the details below.
3.) Click save and you have created a new category.
Note:Do NOT add sub categories to the folders created by a distributor feed. Instead recreate a new category folder (with the same name or with a slightly different than the original) and use that for the creation of sub categories. After that move the products from the first category into the appropriate sub category. You will then change the status of the original category to red. This is the proper configuration for adding subcategories and will prevent complications regarding your site in the future.