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In this video tutorial, the importance of selecting the best categories for your Kindle Direct Publishing (KDP) books is emphasized. Amazon uses category data to understand your book, which can improve its rankings on the platform. Shoppers on Amazon often browse categories when looking for books, making it crucial for your book to be listed in relevant categories, especially in the top 100s. Initially, you can add two categories to your book listing, but once live, you can add up to eight more categories, totaling to 10 categories for your Amazon KDP book. The more relevant categories your book is listed in, the higher the chances of it being seen by potential shoppers.