Installing plugin "could not create directory"

Hello,

I just installed Word Press on my local Ubuntu machine using this guide. I am trying to install the WooCommerce plugin. I get this:

Downloading install package from https://downloads.wordpress.org/plugin/woocommerce.2.2.10.zip…
Unpacking the package…
Could not create directory.

When I try to upload it directly I get this:
Installing Plugin from uploaded file: woocommerce.zip
Unpacking the package…
Could not create directory.

I changed permissions in plugins folder. I also added:
define('FS_METHOD', 'direct'); to wp-config.php when trying to upload directly.

Please help me get my plugins installing.
I have no other plugins except the default Akismet that the install came with.