Actually, Gmail doesn't use folders. To help you organize your mail more effectively, Gmail uses labels instead.
Here's why we think labels are better than folders:
|A conversation can have more than one label||You can only put a message in one folder|
|A conversation can be in several locations (Inbox, All Mail, Sent Mail, etc.) at once, making it easier to find later||You have to remember where you filed a message to retrieve it|
|You can search conversations by label||You can't always do folder-specific searches|
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