Tables allow you to manage your catalog items more efficiently. All of the items you add to your catalog must be placed within a table. If you don't create any tables of your own, all of your items will be placed within a default table.
When you create a table, you choose the fields that are available to you when you add items to that table. If you sell a large number of new and used books, for example, you might want to create a special "Books" table. You could include fields especially relevant to books, like an "ISBN" field or a "Reading Level" field that would allow you to indicate the book's target audience. If you also sold records and tapes, you could then create a separate table including fields more relevant to those items.