What is a category type?
When adding a new category, the existing category whose properties you want the SKUs under your new category to adopt, is called the Category Type
How to set a category type for a category?
Open the Admin Portal.
Navigate to Catalogue, and open any of the sections, such as "Furniture", "Hardware", "Finish", etc., depending on where you wish to add a category.
In the Category list that opens, select the "+" icon to add a new category.
In the modal that opens, specify the category name.
In the Category Type field, open the drop down menu and select and existing category whose properties and addability you would want your category to adopt. For example, in case you want your new category to be included in the Add Hanger Rod carousel, add a category to the Hardware section and set the Category Type to "Hanger Rod".
Select Done.
Navigate to the newly created category.
Add your subcategory, group and SKU to this new category.