Robert_Charlton - 8:04 am on Apr 1, 2013 (gmt 0)
This is done for seo purpuse, as in all those folders these pages are index pages with folders with keywords in the name of the folder.
The ranking effect of keywords in the file path name is miniscule.
At least, doing many folders with keywords in, it looks on the structure that I am a big company even though Im not.
This isn't remotely how Google looks at "branding" factors. A hierarchical structure might well make better use of what inbound linking authority your site has, but unless you know why you're building a directory structure, it might not help you. It's definitely not for "appearances"... to look like a big site.
I just cant understand how that second page can rank higher than page level 1.
I'm assuming that there are probably a few things you've left out of your analysis.
Let me ask you how many product links you currently have on your home page, and whether you have any product categories and category pages.