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Equipping items, or putting them on your character, can be done in a few different ways. Note that for any of these to work, your character must be able to use the item to begin with, and if the description is red in any way, that represents a restriction preventing you from equipping that particularly item.
In the case of replacing bags, you will probably need to use the first technique. You will also want to specify where an item goes for items with two available slots such as rings, trinkets, or melee weapons (for dual wielding classes.)