I previously thought that this was posted here somewhere. Either it was removed or I was mistaken. Here are the rules for selling loot.

We ask that all players pick up all loot in an area they just went through. When you go to sell the loot, please sell it to the appropriate shops. Swords, armor to Armory; bows & arrows to bowery; potions to brewery, etc. If you are unsure where something should belong, please ask.
Also we know certain shops pay more for some items. But please try to find a shop that carries the same type of merchandise so that it does not cause too much lag when selling. We are in the process of adjusting the items to match what is in the nearest shops and also of implementing a tool to destroy loot that you dont want or cannot pick up. Once this is in we ask that you please use it in all areas as it will help to greatly reduce any lag for yourself and all other players. Thank you and have fun.

QM Breeze