Does a 404 Error have any Serious Impact on SEO?

Selected answers from the Dumb SEO Questions Facebook & G+ community.

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  Junwei Huang: Hi Guys,
  
  Does 404 Error have any Serious Impact on SEO? Any Consequences that will affect page rank? Recently I used Moz Crawl Diagnostic and found that there's more than 60 404 error pages in my Client's Site. What do you guys think? Feel free to comment and share. Thanks.
  
  Regards,
  Junwei
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  RACHIT GUPTA: Hello, it does not impact your ranking but impact on user's prospective. Ned to redirect to relevant page which improves bounce rate as well as exit rate of the website.
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  Junwei Huang: Ok. Thank you.
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  Brandon Campbell: 60 404 errors will impact your SEO efforts but not your ranking. I agree with +RACHIT GUPTA ;that you need to have those 301 redirect to a relevant page. In the meantime, create a custom 404 page with navigation to other parts of the site. This will improve user experience until you can get all the 301's out of the way. Lastly, update the XML sitemap to help show search engines that the pages are no longer there.
  
  I'm guessing with that large number of 404 errors you're talking about an ecommerce site?
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  Edwin Jonk: From the expert panel in this weeks SEO Questions hangout on air on 00:01:45 into the YouTube video: https://dumbseoquestions.com/q/does_a_404_error_have_any_serious_impact_on_seo +Junwei Huang
  
  The cuetimes listed on this page are functional while the live broadcast continues and also once Youtube has finished processing the public broadcast. Processing time varies between 6-24 hours. During this period the clip is viewable in full but the cuetimes cannot be relied on. ;
  
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  Junwei Huang: Ok. Ty edwin :)