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This is definitely the best thing to do. Whenever a page goes to a 404 you should be consider a redirect of some sort. I would take into consideration user experience when you're doing your redirects as a priority. In general, when I work with e-commerce website, I will 301 redirect old product pages (now 404 pages) through to the main category pages. This provides a good user experience and any links that were pointing to that product page can be flowed into the category page (you'll be surprised how much traffic you lose from not doing this).