You can move Items around by enabling dragging on your Inventory Manage page.

(but you can't change the structure of your inventory by dragging - see here for that)

Here is how you change the order of things.

Take a look at these Norco's.  We have the M above the S which is clearly wrong.

So we hit the options > enable dragging checkbox:

(we don't allow dragging by default because it can be annoying and dangerous on touch screens)

Then we can drag them into the order we want:

What can be dragged into a new order?

  • Categories
  • Product Families within Cats
  • Product Lines within PFs
  • Items within PLs

But !  Please note - you can't change the structure with dragging.

e.g. you can't drag items into another PL 

For that you need to see this article in order to make structural changes.