How does this handle product categories?
Categories in Shopify are called "Collections". You can assign products to dynamic collections, for example: "Any product with X tag" or manually select products to a specific collection as well.
ShopWP allows you to display products from any collection using the [wps_products] shortcode or Products Block.
ShopWP allows you to display products from any collection using the [wps_products] shortcode or Products Block.
More information on Collections can be found here.