I sort my fabrics mostly by color. I will place yellows and golds next to each other, same with reds and pinks; blues and purples. If they are part of a collection, I sort them by collections and keep them together. There is the exception, as embellished in gold; holiday, fruits/vegetables, specific themes, etc.. They are folded and shelved in cabinets. Anything under 1/2 yard is folded smaller and put in small containers by color only. If I had the room, I would break it down even more. But this way I can tell at a glance if I am looking for something. It cuts back on pulling out everything when looking. But do whatever you think will work for you - everyone is different.