What do you mean "format zips", I thought ZIP was a PC archive system like LHA? The only trouble you'll get is truncation to 8.3 character filenames.
You're confused.
There's
ZIP archive format and
ZIP drives.
The 8.3 truncation is NOT due to zip archive format (zip handles long filenames just fine), but FAT filesystem. If you use VFAT long filenames are ok. The AmigaOS provided CrossDOS only does old FAT though and is thus limited to 8.3 names.