this post was submitted on 29 Apr 2025
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What I always do is use the hollow stump behind one of the stores in the Imperial City Market District (the spot where you follow whats-his-name that's buying corpse clothes from a shady dude; Thoronir I think his name was?).
You can also buy a shack on the waterfront for like 500 gold (from the city planning office in the market district), which you could pretty much have if you picked up everything from the tutorial dungeon and sell it to Shady Sam (a fence not associated with the Thieves Guild who will buy anything for almost full price) outside the Imperial City walls.
Pretty sure you could also just drop it on the ground. Nothing despawns and NPCs don't pick up random shit off the ground in Oblivion the way they do in Skyrim/Fallout 4.