Featured collections are shown on the first page of your store and are an important part of marketing.
To set a featured collection the option is a bit hidden in the settings. (settings > Advanced settings > Customize Store > press submit at the bottom)
IMO it would be more logical to move it to the collections tab and allow users to set a featured collection from there. It could be as easy as clicking a
with a confirmation window “would you like to feature this collection on your store?”.
Here’s a mockup:


