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To organize items in a drop-down list alphabetically, even when the original list is unsorted, you can use a simple formula technique. The tutorial demonstrates how to rank the position of each item according to alphabetical order and then create a new sorted list. This involves unhiding some columns, applying a ranking formula, and utilizing a match formula to align all items correctly. The presenter indicates that the initial list is not manually sorted, but with these formulas, the drop-down selection appears in proper alphabetical order. For more detailed information on various types of drop-down lists, another video covers when and how to use them.
