How do you drop items?

I know how to destroy them (put them in the bin), but how do you drop them?

Simply drag them out of your inventory and drop them on the ground. If it's multiple items in 1 slot (57 tanned hides or 32 bolts of cloth, for example), a dialog box will pop up where you specify the amount you want to drop.

Dropping items only works in exploreable areas, NOT in towns/outpost.