The easiest way to manage your inventory once you get beyond a few hundred items is SKU - stockkeeping units. Start at 1001 for the first, 1002 for the 2nd,etc. Both Amazon & Gemm support SKU's in their inventory uploads from Excel spreadsheets. Use removable stickers to put each number on the stock unit. Then keep the stock in boxes labeled on the outside with the SKU's it contains, ie, 1001-1100. Over time, you can combine boxes as you sell off stock.
This system prevents you from selling the NM copy of the lp for the VG copy, since they have different numbers and are separated by other inventory. Also makes picking a breeze and filing inventory a snap - just start numbering where you left off and put the inventory at the end of the last box!
Steve Weber gives a more combrehensive overview in his book - check out his website at weberbooks.com. It's geared towards bookselling, but still lots of good info regarding online selling.
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