An alternative to increasing inventory size, could be to have a chest to store things in town, that you want to save for later (whether that is items for a quest, or crafting components etc. (could be locked behind a 1 or 2 stage Quests as well if needed (as it usually takes a while before you do get inventory issues, so wouldn't be too big of an issue if you don't have it right from the start)) That way your character inventory could be used almost purely for looting, instead of being filled with items needed for multiple quest and good crafting component you can't make use of right now and then