Correct structure for an authority site

Anoop, what you outlined is actually a 4-tier structure.

Home Page > Category > Sub-category > Product

For 50-75 products, you might want to see if you can knock a tier out of that:

Home Page > Category > Product

This brings your money pages, the ones with products people can buy, one click closer to the home page. It also increases the odds of the search spiders getting your money pages.

A silo structure means keeping like items grouped together.

Say you had wildly different product lines, like

Hand-crafted Room Dividers
Lingerie
Video Games

Each product line would be a category, and all internal linking would be to other pages in the same category. Individual products would link to the category page, and perhaps to other products within the category. The category page would link to the individual products and back to the hom page.

The home page would link to the categories and perhaps to select items you want to boost.

This structure helps search algorithms slot you into a relevant theme. Better theme relevance can lead to better ranking for long-tail searches.

If I'm looking for, say, a carved mahogany room divider and the search database 'sees' your divider category (with all the links related to room dividers) as highly relevant, it will serve your page over one without the thematic structure.

The exact same set of pages about room dividers, which also link out to pages about video games and ladies' undergarments, will be seen as less relavant and thus assigned a lower rank for that search.

That's a really nice template, too. I'm wondering if it's commercially available.