Categories
Here is where you can view and create your own categories.
Categories are used in instances where products follow a specific archetype, that you'd like to separate these items into, for instance:
We have two Products: "T-Shirt" and "Jeans".
We would want to separate these two clothing types by creating a category called "Pants" (which will hold the "Jeans" item), and another category called "Shirts" (which will hold the "T-Shirt" item).