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The easiest way I've found to manage collections is to use the kindle app on either an iPad/iPhone or android device. As soon as the book shows up in All Items I add it to a collection via the app then when the book arrives on my kindle (I keep the wifi off so the app gets the book earlier than the kindle) it is filtered into the correct collection.
DH and I share an Amazon account so between us we have over 50 collections as we don't have the same taste in books, our collections are prefixed by our names.
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