How to configure the Merchandise WooCommerce
The first step for Merchandise WooCommerce is to add New Products with specific category.

Sort Products Drag and Drop By Category
You can sort product items for shop and category pages. You can see drag and drop option for sorting products. In the product sorting settings admin can select all products or specific category then drag and drop.

Sort products drag and drop for all products
There is drag and drop option for sorting products. In the product sorting settings you can select all products option.