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In this video tutorial, the importance of choosing the best categories for your Amazon KDP books is highlighted. Amazon uses category data to understand your book and improve its rankings. Shoppers on Amazon often browse categories instead of searching for keywords, making it crucial for your book to be in relevant categories. Initially, you can add two categories to your listing, but once the book is live, you can add a total of 10 categories to increase visibility and chances of being seen by potential readers.