This would be a neat feature considering it can be tedious to pickup multiple arrows and hard when engaged in combat

Yes!!! Please add this!! It's really awesome to be able to retrieve the arrows to be re-used, but they are so tiny on the ground. If not auto-pickup, maybe some easy way to retrieve them, especially since we are currently shooting 30 - 60 to take down spiders and such.

+1  I'm working on a FPS dungeon game in Unity and this was one of the first features I added for the bow and arrow.  You select a single arrow to pickup and it auto picks up all arrows within a certain range.