Important things to know:
ONLY WooCommerce and BigCommerce users will actually see subcategories used on the provider end.
Any other merchant account integration provider will just see the lowest subcategory pushed to the point of sale/web store.
When filtering by category, in a report or pop-up window, only the exact category is used.
For example, when filtering a report for "Apparel," it will only show items assigned directly to Apparel. It will not include subcategory sales of "Shirts" or "Pants."
To see a report that includes multiple subcategories, select each one individually in your filter.
In order to make a category a subcategory, all you have to do is open it up and assign it a "parent" category.
Parent categories allow for more advanced e-commerce navigation and more flexible reporting.
A subcategory can also be set as a parent if you want to create a further delineation:
Create a Subcategory
Click on an existing category, or create a new one on the Categories page. At the bottom of the specific category page, you'll find a section to add a parent category, as highlighted here:
In the above example, we are in the existing "Shirts" category and we want to make it a subcategory to "Apparel" (making Apparel the parent category).
Start typing the desired parent category name into the text box, select it, and then hit "Save."
Once a parent category is successfully applied, it will be visible under the subcategory as shown here:
Category chains are not limited, so you can establish as many layers as you need!