Labels or Folders in Zoho Mail Suite

Labels or Folders in Zoho Mail Suite

Hello, 

I really like the Zoho Mail Suite and I am trying to understand the best use for folders and labels.  Currently I have email setup so I can label each message by customer account... but now I'm thinking it may be better to use email Folders for each customer account.  How does the email archive feature come into play.  Will folders take up more space than archived messages with a label applied?

Thanks,
John