does gmail have folders or just labels?

Labels only, but they do the job. Move to in Gmail removes the inbox label and adds the one you picked, so it behaves like a folder. The difference is one email can carry several labels. For automatic sorting, click the options icon in the search bar, set the from address or subject, Create filter, tick Skip the inbox and Apply the label. That's a rule. On the left under the label list you can nest them under a parent for the outlook feel.