A well-organized collection is nicer to manage. Here are the best practices.
Strategy 1: Per category
Create a separate collection per main category: "LEGO sets", "Board games", "Books". Quick overview, easy to share per theme.
Strategy 2: Per status
Create collections based on what you do with them: "Actively collected", "For sale", "Display". Helps managing a large collection.
Strategy 3: Per location
For people with physical location differences: "In the attic", "In the cabinet", "In the garage". Helps finding items back.
Strategy 4: Per project
For LEGO builders: "To build", "Built", "Disassembled for parts". Helps managing your build queue.
Combine strategies with workspaces
Got really a lot of collections? Use workspaces to separate "Personal", "For sale" and "Family collection". Switching between workspaces is two taps.