Click on Product Categories on the main part of the screen.
The Product Categories page will open. This is where you will set up categories if you want to use them. Just type in the name and description of the category that you want to create and click on Save Category. The category that you created will show in the Category List now. If you want to edit a category, just click on edit by the category that you want to change, make the changes and then click on Save Category. If you want to delete a category just click on delete by the category that you want to delete. Then you can click on Product Categories to close the category again.