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Mega Dropdown Menu is SEO friendly ?
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Yes, it generates cleanly coded, nested unordered lists (no tables). It also generates valid XHTML code.
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If I remove all my category listing & use Mega Dropdown Menu instead then SEO will affected ?
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Even if you need to alter your category structure for the menu, assuming you have a XML sitemaps setup, it won't take long for the likes of Google etc. to re-index your store.
You can use .htaccess 301 redirects for your most important / highest ranked category URLs.