Categories and Category Plugin Trouble

I need to have collapsing category list that goes on to the side bar as a widget. I have installed “Collapsing Categories” plugin and it is great, except when I click on a particular category other than the top parent category it takes me to a page that says “Sorry we couldn’t find any results for this search, try one of the popular keyword searches below;”

It is as if there is no product in that category. I am using Shopperpress theme from Premium press.
http://sueswrapskirts.com/
http://sueswrapskirts.com/wrap-skirts/short-length-skirt/

Please help, I need to find a way to make it work.

Thank you!