What are the downsides of auto-generated categories?
The categorization from your webshop might be very specific. If this is the case, the generate categories functionality might return the maximum number of generated categories (which is 20 pages). In that case, the categorization of the platform you're trying to send products to is often less specific then your own categorization.
What we see often is that users set a lot of rules to send multiple very specific categories to the same category of the export platform. This can cause a lot of unnecessary extra work. In addition to the extra work, filling in 20 pages of the generated categories probably will not categorize 100% of your products, because we had to stop generating category rules at our max.
To avoid unnecessary extra work and to make sure you actually end up categorizing 100% of your products, work smart in your categories. Instead of blindly matching all of your very specific categories to the same (less-specific) category on the export platform, look for keywords that appear in multiple categories and use the "contains" operator to categorize them. The image below describes what we mean by that.