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For me, collections is a place to park things for special purposes. E.g., To Read and Read are self explanatory. After a book is Read, I delete it from the Kindle and keep it only in Calibre. Skip is a place to put things if I decide I am not going to read them. They get deleted in the next maintenance pass. Reserve is a place to park things I will want to read, but I want to wait a while, e.g., if I am building a complete set of something. Reference is for reference books like dictionaries and the like.
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