I'm looking into using the mod Lootification to add more immersion to my playthrough as I use Immersive Armors and Heavy Armory. However, I'm having a bit of trouble understanding how to use it. Are there any tutorials out there to show you how to use Lootification, or can anyone on here explain it?

P.S. Yes, I already googled it.

Is this the part you are not sure about or something else?

Make sure Lootification.esm is active in your load order and make your merged patch using http://skyrim.nexusmods.com/mods/25859 as normal (check below for details if you don't know how to do this). Then run LLI.jar and press the patch button in the top right corner. It will create a custom lli.esp tailored to the mods you have installed with all the enchanted items and leveled lists and outfits to distribute them. Make sure you activate lli.esp and play your game.

It's the part about merged patches that's getting me. I've never used TES5Edit to make a merged patch. I have made and used bashed patches using Wrye Bash if that helps.