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This tutorial explains how to display items in a drop-down list in alphabetical order, despite the source list being unsorted. The presenter demonstrates with a list of office items and shows three types of drop-down lists. To achieve the alphabetical sorting, a simple technique is used, involving a formula that ranks each item's position in alphabetical order. A new list is then created using a match formula to arrange the items correctly. The process does not require manual sorting of the initial list, making it an efficient way to manage display order in drop-downs.