# Organizing Your Inventory
As your inventory grows, organization becomes essential. Nifty provides **Labels**, **Favorites**, and **Private Notes** to help you categorize and find items quickly.
### Where to find it
To manage **Labels**, go to Settings → [**Labels**](https://app.nifty.ai/settings/labels).
**Favorites** are managed directly within the [**Inventory Manager**](https://docs.nifty.ai/inventory-management/inventory-manager).
**Private Notes** can be added from the **Inventory Manager**, or when [creating or editing an item](https://docs.nifty.ai/crosslisting/creating-and-editing-items).
### Labels
**Labels** are custom tags you create to categorize items however makes sense for your business. Each label can have a custom name, description, and color.
**How to create labels:**
1. Go to **Inventory Settings**.
2. Find the **Inventory labels** section.
3. Create a new label or edit an existing one.
**How to apply labels:**
1. When creating or editing an individual listing, you can add labels using the **Inventory labels** section.
2. When viewing items in your **Inventory Manager**, you can select multiple rows and [**Bulk Apply Labels**](https://docs.nifty.ai/inventory-management/bulk-actions).
{% hint style="info" %}
**Note:** Bulk apply labels will override all existing labels for the item(s).
{% endhint %}
**Example uses:**
* "Photo needed" — items that need better photos
* "Price drop" — items to discount soon
* "Holiday" — seasonal inventory
* "Source: Estate sale" — track where items came from
### Favorites
Mark items as **Favorites** to create a quick-access list of inventory.
**How to favorite an item:**
1. Find the item in your **Inventory Manager**.
2. Click the star icon to toggle favorite status.
**When to use favorites:**
* Items you frequently pick up and want to copy quickly
* Items you want to track closely
### Private Notes
**Private Notes** are short memos that you can easily attach to an item.
**How to add a private note from the Inventory Manager:**
1. Find the item in your **Inventory Manager**.
2. Click **Add private notes**.
**How to add a private note from the Listing Form:**
1. Find the **Private note** section.
2. Enter your private note.
3. Click **Update item**.
{% hint style="warning" %}
**Important:** SKUs should be put in the dedicated SKU field, rather than **Private Notes**, as the dedicated field is carried over to the [**Sale Detection Tracker**](https://docs.nifty.ai/auto-delisting/sale-detection-tracker) and [**Analytics**](https://docs.nifty.ai/analytics/analytics) when an item sells.
{% endhint %}
### Filtering by organization
Use the **Filter bar** in the **Inventory Manager** to show:
* Only favorites
* Only items with a specific label
And use the **Search bar** in the **Inventory Manager** to search across your private notes.
This helps you work through your inventory systematically.
### Limitations
| Limitation | Details |
| ------------------------ | ------------------------------------------ |
| Create label hierarchies | Labels are flat (no sub-labels or folders) |
