Categories
Store products are usually assigned to one or more categories. By clicking Products -> Categories you can easily manage your categories.

Categories support drag and drop which helps you visually create desired category structure. From the category edit / create page you can assign products to categories.
Categories have one option “Show in sidebar” which will determine if that specific category link will be displayed in product listing sidebar before filters of that specific category. The number of products will be displayed next to the category name.

From the category editing / creation page, you can immediately assign products to categories and sort them according to your choice.