Understanding Office 365 Groups, Distribution Lists and Shared Mailboxes.

Overview

This article explains the uses and differences between Office 365 Groups, Distribution Lists and Shared Mailboxes to help you choose the right tool for your needs. 

Office 365 Groups

Definition:
An Office 365 Group is a collaboration tool that combines an email list with shared access to tools like SharePoint, OneDrive, Planner and more.

Key Uses:

  • Facilitating teamwork with integrated apps and resources.

  • Allowing group conversations while storing them centrally.

Features:

  • Shared Outlook inbox, calendar, file library (via SharePoint), and OneNote.

  • Several users can read and reply to emails from one shared address

  • Messages can be stored in the shared folder as well as a personal inbox (can be configured per individual's preference)

  • Supports threaded conversations and document collaboration.

  • New employees will be able to view historical messages.
  • Historical messages contained in single folder.  (No subfolders)

Good For:

  • Project teams or departments that collaborate frequently.

  • Groups that need access to shared files, calendars, and planning tools.

  • Sending email on behalf of the main email address not from individual email addresses.

Distribution Lists (DLs)

Definition:
A Distribution List is used to send emails to multiple recipients at once using a single email address.

Key Uses:

  • Send announcements or internal updates to a team or department.

  • Broadcast emails without storing responses in a centralized location.

Features:

  • One-way communication (primarily).

  • Members receive emails in their individual inboxes.

  • You can create a rule to sort emails into folders

  • Cannot store emails or files. (No historical messages saved for new employees)

  • No calendar, OneNote, or Planner integration.

Good For:

  • Emailing a group of users without collaboration needs.

  • Simple internal or external communications.

Shared Mailboxes

Definition:
A Shared Mailbox allows multiple users to read and reply to emails from a common mailbox.

Key Uses:

  • Centralized email communication for teams like support, HR, or sales.

  • Allows multiple users to manage and reply to emails from a shared email.

Features:

  • Shared calendar and contacts.

  • All responses are from the shared address.

  • Emails stay in the shared mailbox, not user inboxes.

  • New employees will be able to view historical messages.
  • Can have sub-folders similar to a user mailbox to sort and organize messages

Good For:

  • Customer service or helpdesk teams.

  • Several users can read and reply to emails from one shared address.

  • Managing team or department-wide communication from a single address.

Comparison Table

Feature / Tool Distribution List Shared Mailbox Office 365 Group
Sends to multiple users ✅ ✅ ✅
Receives external mail ✅ (if configured) ✅ (if configured) ✅ (if configured)
Central mailbox ❌ ✅ ✅
Shared calendar ❌ ✅ ✅
Document storage ❌ ❌ ✅ (via SharePoint)

Choosing the Right Tool

Use Case Recommended Tool
Sending announcements to a group Distribution List
Managing a team inbox (e.g., support) Shared Mailbox
Collaborating with shared tools/files Office 365 Group

Final Notes

  • Distribution Lists are best for simple communication.

  • Shared Mailboxes are great for team-based email management.

  • Office 365 Groups are the most versatile for ongoing collaboration.

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