There is lossy compression and lossless compression both aim to make the data as small as possible!
The fact that file compression is mostly used to transport large files and, for example, MP3 files in order to pack as many songs as possible on your iPod, smartphone, computer, ..., but JPG / JPEG image format is also very common for images here, is also diligently compressed.
The lossless compression!
If you are using compression on large, high quality files, you will likely want to be able to decompress the files to their original state so that no audio or data quality is lost. Lossless compression is used here.
The lossy compression!
For creating just a few tracks to be heard on your iPod, smartphone, ... through the standard headphones, then the audio quality is not that important, and therefore lossy compression is used.
Lossy compression, because of the way it works, can reduce a file to a much smaller file size than the lossless one.
7-Zip and Zip are both compression formats, or archives, whoever compresses again and again the question arises Both Zip and 7-Zip are both lossless compression
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