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Remove the products.. it adds no value. What the article is describing is if you have collisions. Like say you have a "page" in wordpress call "ipod" and you also have a product called "ipod" When you remove the category, everything will be like yoursite.com/ipod so if you have a product named the exact name as a page you will have a collision. Just ensure that you do not have this. SEO ultimate plugin can do this, I use it on my blog for the very same thing with no problems. Or you can manually do the rewrites in the htaccess file. You absolute best bet since you are not dealing with a lot of products, it sounds like it is a small site, is do it in the middle of the night and do a spider from MOZ and see if it picks up errors.

You can't go wrong with the keywords in the URL's. But titles are very important too for sure.  I definitely recommend key words in titles if relevant and organized.

Hi Chris, We had a similar issue with one of our websites in the past where we had a 3rd party store under a sub domain and it hit us badly with the whole website effected in the SERPS with duplicate content. Caution advised! Mash