Remember to upload fallback-image.png to /wp-content/THEME_NAME/images where THEME_NAME is name of the directory of the active theme #woocommerce

wc-categories-fallaback-image.php

<?php 
add_action( 'woocommerce_archive_description', 'woocommerce_category_image', 2 );
function woocommerce_category_image() {
    if ( is_product_category() ){
	    global $wp_query;
	    $cat = $wp_query->get_queried_object();
	    $thumbnail_id = get_woocommerce_term_meta( $cat->term_id, 'thumbnail_id', true );
	    $image = wp_get_attachment_url( $thumbnail_id );
	    if ( $image ) {
		    echo '<img src="' . $image . '" alt="" />';
		  } else {
		    $fallback_image_url = get_stylesheet_directory_uri() . '/images/fallback-image.png';
		    echo '<img src="' . $fallback_image_url . '" alt ="" />';
		  }
	}
}