How to Set Up Shopify Product Categories for Better Navigation

Effective navigation is a key factor in converting website visitors into paying customers. On Shopify, one of the most essential elements of a smooth user experience is organizing your products into categories. Categories help visitors find what they’re looking for faster, improve your store’s SEO, and lead to higher conversion rates.

In this blog, we’ll walk you through how to set up Shopify product categories and provide tips to enhance your store’s navigation in 2025.

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🛒 Why Product Categories Matter

Before we dive into the “how,” let’s discuss the why. Categorizing your products in Shopify not only helps with user navigation, but it also has the following benefits:

• Better User Experience (UX): Customers can easily browse your store and find exactly what they want.

• Improved SEO: Well-organized categories can help you target more specific long-tail keywords.

• Increased Sales: A clean, organized store helps increase the chances of cross-selling and upselling.

Now, let’s jump into the step-by-step guide on how to set up Shopify product categories for better navigation.

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📝 Step 1: Understand Shopify Collections

In Shopify, product categories are called collections. A collection is a group of products that share something in common, such as product type, season, price range, or sale status. Shopify allows you to set up manual collections (where you add products yourself) and automated collections (where products are added based on conditions like tags or price).

There are two main types of collections in Shopify:

Manual Collections:

• You manually choose and add products to the collection.

• Best for a curated selection, like “Best Sellers” or “Featured Products.”

Automated Collections:

• Products are automatically added based on conditions (tags, product types, vendor, etc.).

• Ideal for large stores with many products.

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🔧 Step 2: Create a Collection in Shopify

Here’s how to create a product category (collection) on Shopify:

1. Go to Your Shopify Admin Panel

• Log into your Shopify account and go to the Admin Panel.

2. Navigate to Collections

• On the left sidebar, click on Products and then select Collections.

3. Create a New Collection

• Click Create Collection on the top right corner.

4. Choose the Type of Collection

• Choose either a Manual Collection or Automated Collection.

5. Set Up Collection Conditions (For Automated Collections)

• If you select Automated Collection, set up the conditions for what products should be added. For example:

  • Product Type = “T-shirts”

  • Tag = “Summer Collection”

  • Price > $50

  • You can choose multiple conditions for a more refined categorization.

6. Add Collection Details

• Name your collection. Keep it short, descriptive, and SEO-friendly (e.g., "Men’s T-Shirts" or "Summer Sale").

• Write a collection description that helps both customers and search engines understand what products are in the collection. This also helps with SEO.

7. Upload Collection Image (Optional)

• Adding a collection image helps customers easily identify categories on your homepage or navigation menu. Make sure the image is high quality and represents the category accurately.

8. Save the Collection

• Once you’ve added all the necessary information, click Save.

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📱 Step 3: Add Collections to Your Shopify Navigation

Now that your collections are set up, it’s time to add them to your store’s navigation to make them easy to find. Follow these steps:

1. Go to Navigation Settings

• In your Shopify Admin, go to Online Store > Navigation.

2. Edit the Main Menu

• Under Menus, find your Main Menu (or another menu you want to edit), then click Edit Menu.

3. Add Menu Items for Each Collection

• Click Add menu item.

• In the Name field, type the name of your collection (e.g., “T-Shirts,” “Sale,” etc.).

• In the Link field, choose Collections and then select the specific collection you want to link to.

• Click Add, then Save menu.

4. Check Your Store’s Navigation

• Visit your store’s homepage and check if the new categories appear in the menu as intended. Ensure they are easy to find and navigate.

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💡 Step 4: Organize Your Collections Effectively

Having well-structured collections is key to improving your store’s usability. Here are a few best practices to keep in mind when setting up Shopify product categories:

1. Use Descriptive, Clear Names

• Make sure your collection names are descriptive and concise, such as “Winter Jackets” or “Organic Skincare.” Avoid overly generic terms.

2. Create Subcategories

• If you have a large number of products, break them down into subcategories. For example, under “Clothing,” you could have “Men,” “Women,” “Kids,” and “Accessories.”

3. Consider Customer Buying Behavior

• Organize your collections based on how customers shop. Categories like “New Arrivals,” “On Sale,” and “Best Sellers” are always a hit.

4. Use Tags for Further Filtering

• Shopify allows you to tag products within a collection. This can help with organizing products further, such as adding tags like “Sale” or “Limited Edition.”

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🧑💻 Step 5: Monitor and Update Your Collections

Once your collections are set up, the work doesn’t stop there. Keep your product categories fresh by regularly updating them. Here’s what you can do:

• Monitor performance: Check how well each category is performing. Use Shopify Analytics to track traffic and sales data.

• Update product tags: As you add new products, remember to update your collection conditions or add new tags.

• Seasonal collections: Create new collections for special occasions or holidays like “Christmas Gifts” or “Summer Sale.”

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💬 Conclusion

Organizing your products into categories is one of the simplest yet most powerful ways to enhance your Shopify store's navigation and user experience. With well-structured collections, you make it easier for customers to find what they need, boost sales, and improve your store’s SEO performance.