Loot System ( For yet to be an RPG)

Recently i have been introduced to Unreal Engine 4(Through Youtube Channels)…
I got to know the Basics for Surfing around the Engine UI and what not, three months later after being introduced to the engine i’ve started working on a simple RPG game.
Currently Finishing some simple animations( I’m done with the interactions, Picking up stuff, killing the AI and so on). What iam looking For now is how to make the AI Drop Items,
(The mechanism of droping items iam familiar with, my Question is " what is the approach i should use? How to randomize the items that drops ( its Rarity, the stats, cyclying between weapons and armor, utility stuff like gatherables and gold. should i have like a database for the “Spawns”, the items that can drop from a monster ?, i simply need hints and ideas…