Empty folders are a great way to help organize your Inventory. Without adding to the total Inventory Item count (empty folders aren't "Items"), an empty folder is a fast and easy way to add notes. Here you can see that I am using an empty folder as a key for identifying jeans by color. The maker didn't name the jeans by color and being No Modify I can't add the color as I ordinarily might. I could have made a folder for each pair of jeans with the color name but that would make adding a pair slower unless I put a copy of the alpha layer with each pair. Now I can just Ctrl-Click the alpha and the pair I want then choose Add (or Wear).