Categories for e-commerce: n-level deep?

Question

I'm using Exp-resso Store and need my products categorized (like a typical e-commerce site). What is the best way to categorize products? The product categories are n-level deep.

I don't see how to create parent-child relationships in EE Categories, though reference I've found on the Internet and here on SE seem to suggest that there is no limit to the levels of categories.

Or perhaps I should try creating a Channel that has a relationship field and try to mimic categories that way?

My questions:

1. Can EE Categories be nested? If so, how?
2. Is it possible to programmatically populate EE Categories (e.g. via API, DataGrab, etc.)?
3. Would using the relationship field to implement categories be a bad idea? I know I can populate this via DataGrab, which makes it a tempting solution for me (at least it'll be easy for me to populate -- and possibly easy to also assign products to their respective categories?)

Answer 1

It's definitely possible to nest categories and use them in the URL structure. It does take some fiddling to get it to work and the deeper the nesting the more difficult it can be to template.

That being said, there is usually an option to assign categories on import dependent on which module you use. I've seen an option for it in Solspace's importer module.

This is the EE categories documentation