Categories are classes or things which are related, and have some shared characteristics. The following steps describe how to add categories for the products in Magento.
Step 1 − Login to your Magento Admin Panel.
Step 2 − Go to the Catalog menu and click on the Manage Categoriesoption.
Step 3 − Next you need to fill the fields like Name of the category, Is Activestatus which is set to Yes/No and Description of the category.
Step 4 − Click on Save Category button and your category is ready to have the products added to it.
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