Town Square
The most important feature of the Flotsam town square is the inn, mainly for reasons having to do with the game’s encumbrance system. Everything Geralt has equipped counts toward his maximum encumbrance, as well as things that are just sitting in his inventory, like crafting materials, traps, and junk. When Geralt is overly encumbered, he can’t fight well and walks slowly. Once he’s over his encumbrance limit, you want to either go find a merchant and sell off any junk you’re carrying or put anything useful and particularly heavy into storage until you need it.
As it happens, Geralt’s storage is always going to be located at a town’s inn. In the Flotsam town inn, you access it by descending to the second level and either speaking to Dyson Beaver or standing near the chest near the right side of Dyson’s counter. It’s best to keep crafting materials that tend to be heavy in storage, like iron ore, timber, and cloth. In addition to storing your extra stuff, Dyson Beaver is one of four merchants who do business in the inn at all hours.