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Shared Mailbox vs Distribution List vs Microsoft 365 Group

Setting up an info@ or accounts@ address in Microsoft 365 seems simple, but there are three genuinely different ways to do it - and picking the wrong one causes real problems down the track. Here's what each option actually does.

Shared Mailbox

A mailbox multiple people can access, with a shared inbox, sent items, and reply history everyone can see. When one staff member replies to a customer email, everyone else with access can see that it's been handled.

Best for: general enquiries addresses (info@, accounts@, support@) where staff need visibility into what's already been replied to, and where the shared history genuinely matters.

Distribution List

A simple alias that forwards a copy of any email sent to it into each member's individual inbox. There's no shared inbox or sent history - each person just gets their own copy, replies from their own address, and nobody else automatically knows it's been handled.

Best for: broadcast-style communication - an internal newsletter, or a group that just needs to receive the same information, with no need for shared tracking of replies.

Microsoft 365 Group

The most feature-rich option - includes a shared mailbox-style conversation, but also brings a shared calendar, a Planner board, a document library, and by default a linked Teams channel. It's really a collaboration workspace that happens to include email, not just an email alias.

Best for: an actively collaborating team or project that benefits from the shared calendar and file storage alongside email, not a simple mailbox need.

Quick Decision Guide

  • Need staff to see what's already been replied to? Shared mailbox.
  • Just need to broadcast the same message to a group's individual inboxes? Distribution list.
  • Need a shared calendar, files, and ongoing team collaboration alongside email? Microsoft 365 Group.

The Most Common Mistake

Setting up a general enquiries address (info@, accounts@) as a distribution list rather than a shared mailbox is the single most common misconfiguration we see. It means nobody has visibility into what's already been answered, replies go out from individual staff addresses rather than a consistent business address, and there's no shared history if a staff member is away and someone else needs to pick up a conversation.

Switching If You've Set It Up Wrong

These object types can't be directly converted - moving from a distribution list to a shared mailbox means creating the new mailbox, redirecting the address, and manually handling any historical context that needs to carry over. It's a straightforward fix, but worth doing deliberately rather than leaving a mismatched setup in place.

Frequently Asked Questions

Can I convert a distribution list to a shared mailbox later if I chose wrong?

Not directly - they're fundamentally different object types in Microsoft 365. Converting means creating a new shared mailbox, updating the email address references, and migrating any relevant history manually, so it's worth choosing correctly upfront rather than switching later.

Does a shared mailbox cost extra to license?

A shared mailbox itself is free up to a storage limit (currently 50GB) as long as at least one user with an Exchange Online licence has access to it - you don't need a separate paid licence purely to create the mailbox.

Which option is best for a general enquiries address like info@ or accounts@?

A shared mailbox is almost always the right choice here - it needs a shared sent history, and staff need to see what's already been replied to, which distribution lists and Groups don't provide in the same way.

Is a Microsoft 365 Group overkill for a small team?

Not necessarily, but it's worth being intentional about it - a Group brings along a shared calendar, Planner, and Teams channel by default, which is genuinely useful for an actively collaborating team but unnecessary overhead for a simple email-only need.

We set up Microsoft 365 mailboxes, lists, and Groups correctly from the start for Perth businesses - no reply history lost, no confused staff.

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Not sure if your info@ address is set up the right way?

Call 0433 087 091 - we'll check your current setup and fix it properly if needed.

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For related reading, see our guides to SharePoint vs OneDrive and auditing Microsoft 365 user permissions.

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