The game uses the term "storage" in two different ways:
First, as a category of buildings (i.e. storehouses) to store Resources (these are purchased from the shop [hammer icon]); and
Secondly, as a place to store surplus items (i.e. Inventory [basket icon]).
The storehouse buildings will store all the resources collected by the villagers (haulers) and any that you buy from the market.
If you haven't assigned villagers as haulers, tapping the Collect button in the resource (e.g. rock quarries, fur weavers, stone carvers) will send all available resources in that area to storage.
If one of the resources is maxed out, the storehouse(s) will display a warning icon. Haulers from that resource area will not send any further resources to storage and the resource will keep accumulating in the resource's temporary storage until it too is maxed out. After this time, work will stop in that resource area until the resource in the storehouse is below the maximum.
When storehouses reach their maximum capacity, it's advisable to use the surplus resource in stores (i.e. in making recipes) or sell them in the market, so that haulers can start sending resources to storage again.
If you have multiple storage units, all their capacity will be added together and become the new total capacity. For example, having 2 Large Storehouses will give you a total capacity of 5000 of each resource.
Storehouses can be put into inventory. You are supposed to be able to put a full storehouse into inventory and not lose the resources you have bought (see here). However, several players have observed that doing so will, in fact, lose surplus resources. Proceed with caution: If there is no capacity in the remaining storehouses left in the village, you may lose surplus resources in the storehouse put into inventory.
The first storehouse in your village is the small storehouse that stores 500 of each resource. The added 500 capacity is a bonus that stays with your village, so in total, you will have 1000 storage capacity. If you put all your storage units in inventory, you will still have 500 capacity for each resource.
The Crystal Storehouse has been a regular prize in Bingo