FME can automatically extract and use data from a .zip file as if it were a normal dataset.

If you are encountering an error with this specific file (e.g., "Invalid Zip File"), common fixes include: Read zip files wich a user can upload - FME Community

Advanced users often configure workspaces to allow users to upload zipped files or download results as custom-named ZIP archives using parameters like FME_SERVER_DEST_DIR . Troubleshooting Zip Errors