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In this video, the importance of selecting the best categories for your KDP books on Amazon is discussed. Categories are crucial as Amazon uses them to understand your book and improve your rankings. Shoppers often browse categories rather than use keywords, making it essential to have your book listed in relevant categories to increase visibility. Initially, you can add two categories to your listing, but once live, you can add up to eight more for a total of 10 categories. Having multiple relevant categories can help your book reach a broader audience on Amazon.