Then when you create a product you assign the product to the “Home and Garden” category.
When you select the category the products related to this category will appear. If you want to show both sub-categories and products, you can configure that in Appearance > Customize > Product catalog.
Thanks for your response but maybe my question wasn’t clear enough. We’re capable of creating the product’s taxonomy and adding products to the desired categories. What isnlt working correctly with the theme is the displaying of the categories when viewing the results on the shop page.
Currently the shop page just displays all the categories created under Products > Categories [unless we instruct not to show categories which are empty.] We need to show ONLY the categories that are relevant to the category-term referred in the URL and/or the products on the page.
The shop page shows all the products and categories and it is the way Woocommerce work, our theme cannot influence or change that. You can configure showing only categories, or only products or categories and products, however, when you enter the shop page, Woocommerce does not know which category you are going to select and it cannot show the empty page till you chose.