When I shop on here I much prefer if a shop has collections - as long as they make sense though! Sometimes those collections can be a bit random feeling, so I think the important thing is to think like a buyer and put yourself into the head of someone who doesn’t know your shop and imagining what they might be looking for.
I’ve got 3 lines of collections, which I don’t think is too many - I make sure there are 6 per line so that it looks tidy, and I label mine according to recipient or occasion. I think it depends entirely on what you make as to how you’d name/collate them though - if I’m looking at a jewellery shop I’d want things split down into type (eg rings, earrings, etc), colours (eg, stone colour), rather than recipient or occasion.
Collections are really help as there’s no other way of searching inside someone’s shop!
Oh, and yes: when I see something I like I often go into the shop to browse and see what else they have!