You can't organize collections without either doing it on the cloud or via jail-breaked systems,
I keep books in collections on my Kindle, just by creating a new collection in settings, then adding the books to it. No cloud or jailbreaking.
That's pretty much all the organising I require, otherwise I I just read books on it.
It's a PITA doing this if there are already hundreds of books on board, you have to trawl through them and tick the ones you want added, but it only needs to be done once. Easy enough when adding new books, theyre at the top of the list.
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