Disclaimer: We recently redesigned our Admin Area. Your store may look different than the one shown in this video, but most click paths were not affected.
The category tree at Inventory > Categories allows you to click and drag categories into new positions. First, note that you can change the ordering of categories within a menu. The dotted outline indicates a new position within the menu. The filled blue box indicates a subcategory position, which allows you to assign a category as a subcategory of another. By default, subcategories don’t display on the category tree, but you can unhide them by expanding the parent category.
With one or more categories expanded, you can use the dotted outlines to assign a category as a subcategory, or reassign a subcategory as a main category. Note the difference in positioning. This is a subcategory position, and this is a main category position. You can also use the filled blue boxes to assign additional subcategories, or even to assign subcategories of subcategories. This structure continues multiple levels deep.
Next, note that you can move categories among the navigation menus. You can re-name the menus by clicking Edit, typing in your desired text, and pressing Save.
Lastly, note that you can move any main category and its entire subcategory hierarchy to a new position in its current menu, to a different menu, or into a subcategory position beneath a parent category or subcategory. To reduce confusion, we recommend collapsing all parent categories before doing so.