Overview pages will provide you with the opportunity to build in an extra layer in your navigation. Both pages are managed through SHOP > Products > Categories in the left menu of the back office.
Product pages provide an overview of all products for a given category. By clicking on a desired product visitors are taken to its associated product page, which displays one (or several) images of the product, its price, description and (technical) specifications, as well as a button that enables them to purchase it immediately.
On the other hand, overview pages show all sub-categories placed underneath their associated main categories. Underneath an overview page you can place either (a) additional overview pages, or (b) product pages.
A combination of overview and product pages leads to a clear and logical navigation. Many eCom retailers use overview pages as their main store pages (for example, corporate information, clothing, food) and product pages (such as Coats, Trousers etc.) and text pages (for example, opening hours, General Terms and Conditions etc.) as sub-categories.