One of the most requested features in Gmail is "folders" but what most don't know is "labels" are an advanced form of folders. When others try to switch to Gmail, the one feature they sorely miss is the "folders". So, Gmail has provided that feature in "labels" without compromising it and satisfying everyone in the process.

The difference between folders and labels is in folders you can only assign one email to one folder, whereas in labels, you can assign the same email in different labels at the same time.

For example if you receive an email from a friend "M" about a great YouTube video, then in "folders", you will assign your friend's email either in "M" folder or in "YouTube" folder but not in both. Whereas with "labels" option, you can assign the same email in "M" and in "YouTube" labels. So whenever you click "M" or "YouTube" labels in Gmail, you can see your friend's email. Labels are more useful than folders because of this difference.

But some still want folders option, so Google has added this new feature in Gmail.

The new Gmail will look something like below, you will see a new button "Move to" along with new "Labels". The latter was available previously in "More Actions" before.

When you receive the email, you can click "Move to" and assign a label. After you do that the email will be archived and put into that label folder and the email will be moved from the inbox to the "label" assigned. This "Move to" feature eliminates the "Archive" step.

  This feature is not available in everyone Gmail account, but in the blog they promised it will show up in all accounts very soon.