How to create a web category
From the Navigation Panel
Open up Administration
Click on Web Categories
The Web Categories browse window opens
at this point you can start creating your categories.
Click on button New
Then create a new Web Category window appears
Key in the Name of the Web Category
Select from the drop-down box the Parent Category for this Web Category (if no web category exists and you are creating the parent category at the moment, leave this field empty)
Key in the Description of this Web Category
Click on Insert to add products to this Web Category manually
Click on button Save and Close
Repeat the above steps for each new web category.