Tags will give you an alternative way to group your items so its easier to search for items across your inventory.
Your folders could be created based on location but if you want to see your items based on "brand" or "color" you could add those as tags and view your items in the "Tags" section of the App.
You can add tags in a few different ways. The first is by adding a tag directly to the item while in edit mode, pictured below:
The second is by clicking the "tags" icon from the main view of your Sortly account and then adding the tag by clicking the "Add tag" button on the top right. This will add the tag to your account, although it won't be associated with any specific items.
From this view, you can also review all of your tags and remove tags from your system. If you remove a tags from the tags section, it will keep the item, but it will remove the tag on all items it was previously associated with.