Ok, in some cases it's even better, as one book can be included in several collections, such as 'What to read next' and 'Adventure Books'. Instead of folders Kindle offers collections to organize books. Or rather, you can create folders and put ebooks to them, but on the device screen books still will be displayed in a single list (with no folders). From the very first model, Amazon has decided not to support folder structure for electronic books.
However, organizing books on this device - leaves much to be desired. Kindle - is the best and most popular ereader in the world.