Yeah, that's the problem. You will run out of space sooner or later.
- Sell or destroy any books you don't need. (Use any consumable Stat or Skill books, obviously)
- Sell or destroy all of these plants: Moonshine, Holy Basil, Oak Tears, they are not needed for anything.
- if you have the Steam version and are trying to carry all three of the sets you get... don't. Pick the one which is the closest to your character build, sell the rest.
- Keep all Malachite GEMS (the green, smooth ovals), sell all Malachite ORE (a green chunk of rock)
- Disenchant and sell all equipment you no longer need or want to use.
- Only pick up gems and ores you have an immediate use for. See
Alchemy and Enchanting: The Simplified Guide for details.
- Sell or destroy all food and drink items which are no longer providing useful healing/recovery
- Sell or use all lesser strength/dexterity/intelligence/armor potions which are obsolete.