Products and Categories..

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Just noticed all of my products are actually categories… I wondered why when I pressed on the ‘product’ in the menu it took me to another main page, then I had to click on the product itself.

What is best practice here? I made a new product and dropped it under the menu where it belonged and noticed ehat was going on…

Does it have any effect on SEO at all? I think I would prefer them all to be product as it’s one less page to click on…??