Grouping, categorizing woocommerce products

What is the best way to create the following structure for Woocommerce products:

Grouping (level 1)

Grouping (level 2)

products

Grouping

Grouping (level 3)

products

Grouping …
Grouping …
etc.

Grouping …
Grouping …
etc.

Grouping

Grouping

etc.

Using wordpress category (level 1), subcategory (level 2), subsubcategory (level 3) as a grouping method doesn’t seem to be optimal, because of the following restrictions:

Grouping level 1 only contains next level groupings but NEVER products

Grouping level 2 contains products OR next level groupings (so not products and groupings at the same time).

Grouping level 3 only contains products (there is no Grouping level 4, 5, 6…).

So something like the below – which is how wordpress categories are meant to be used I think -, would never happen:

Grouping

products (can never be here)
Grouping

products (can’t be here, if there is a Grouping on the same level)
Grouping

products

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