You can create as many categories as you like have them be as deeply nested as you need.
Create a category
Go to the categories section in the dashboard to add your first category.
Your category must have a name and permalink in order to be saved. Your category permalink will be automatically generated but you can also set this to whatever you want.
Give your category a description if you wish.
Add category images
Add as many category images as you want.
Save your category!
Now that you have at least one category, you can create sub-categories.
Click Add and a side panel will appear for you to create a sub-category.
Sub-categories are a way to be more specific about your product categorization. For example: Womens > Footwear > Casual Shoes
Save your sub-category!
You now have created a parent and child category hierarchy.
Associate category to a parent
You can associate a new category to a parent by selecting it in the drop-down.
In the below example we are adding a new category Sports bag with the parent category Bags.
For categories that have more than 3 levels of nested sub categories, we will show ellipses. Hover over the ellipses to view the full herirachy.
The below example is: Womens > Footwear > Running > Cross-country