I am looking to use SEO friendly urls. What would be the best approach to do so?
As per official documentation presented here https://docs.magento.com/user-guide/catalog/catalog-urls.html:
The URL key should consist of lowercase characters with hyphens to separate words. A well-designed, “search engine friendly” URL key might include the product name and key words to improve the way it is indexed by search engines. The URL key can be configured to create an automatic redirect if the URL key changes.
To prevent search engines from indexing multiple URLs that lead to the same content, you can exclude the category path from the URL. Another method is to use a canonical meta tag to let search engines know which URLs to index and which to ignore. By default, Magento does not include the category path in product URLs.
Also, please read the whole documentation on that link in order to understand the context and the appropriate settings.