Steps:

  1. Log into the system
  2. Go to Tools and Add-Ons module
  3. Under Stores/Inventory section, click on the “Manage Product Type” link
  4. Click on the “Add Product Type” button at the top left of the page
  5. Fill in the following field in the pop out form, Category and product name
  6. Click in the “Submit” button to save once you are done