Whenever you gather a resource or pick up an item it is added to your Inventory. These items are divided into 6 groups:
• Weapons, which can be wielded in combat.
• Apparel, which can be equipped to improve your stats or just dress up.
• Ammo, which must be equipped in order to use a ranged weapon. Arrows are for bows and cartridges are for firearms.
• Utilities, which can be used from your Inventory or equipped to a Quickslot. Most utilities are consumed when used. You can't eat the same meal twice.
• Tools, which are used to gather resources. Tools do not need to be equipped, just set as active. Your character will use the active tools automatically.
• Resources, which covers everything else. Mostly, these are items that are used to craft other items, but it also includes things like Talismans and Animorum.
In order to equip an item, you can double-click it or click and drag it to the left. To drop it or place it into a storage container, hold [SHIFT] and click it or drag it to the middle of the screen. Equipped items are no longer in your Inventory, so don't forget where you put that potion.
Clicking an item will lock its tooltip open, and allow you to perform other actions like repairing, salvaging, or comparing it. The actions that are available vary by item.
Items have weight. Items in your Inventory count against your Encumbrance. When you are carrying more than your Encumbrance limit, you will not be able to roll, run, or sprint. If you reach more than twice your Encumbrance limit, you will not be able to walk at all.
Similarly, items you have equipped count against your Equip Load. This includes any items in your Quickslots. As your Equip Load increases, you will move slower and dodging will cost more Stamina. If you exceed your maximum Equip Load, you will not be able to roll or sprint.
You can view the consequences of being Encumbered or Over-Equipped by hovering your mouse over the weight bar for each.