The upload a zip file command is integrated into the Upload menu in the document library…

Users may elect to keep the a copy of the uploaded Zip file in the document library (not done by default) and the create a new folder for the expanded contents of the zip file (recommended and enabled by default)…

A new folder based on the name of the Zip file has been created in the document library…

The original Zip file has been uploaded, as requested by the user…

The folder structure within the Zip file has been expanded into the document library.