How to Create Group / Distribution List/ Shared Mailbox in Microsoft 365 (O365)
Below are the step-by-step instructions to create Distribution Lists (DLs), Microsoft 365 Groups, and Shared Mailboxes in Microsoft 365 Admin Center and Exchange Admin Center.
1. Creating a Distribution List (DL)
A Distribution List (DL) allows you to send emails to multiple recipients without creating a shared mailbox.
Steps to Create a Distribution List:
-
Go to the Microsoft 365 Admin Center:
- Open Microsoft 365 Admin Center.
- Sign in with an administrator account.
-
Navigate to Groups:
- In the left menu, select Teams & Groups → Active teams & groups.
-
Click “Add a Group”:
- Select Distribution list and click Next.
-
Configure Group Details:
- Name the distribution list (e.g.,
SalesTeam@company.com
). - Add a description (optional).
- Assign an email address for the group.
- Select “Require sender authentication” if you only want internal users to send emails.
- Name the distribution list (e.g.,
-
Add Members to the Distribution List:
- Select users who should receive emails from this DL.
-
Review & Create the Distribution List:
- Click Create group to finalize.
-
(Optional) Enable External Email Sending:
- If external users should be able to send emails to the DL, modify settings under Exchange Admin Center → Recipients → Groups.
2. Creating a Microsoft 365 Group
A Microsoft 365 Group provides not only a shared mailbox but also access to SharePoint, Teams, and Planner.
Steps to Create a Microsoft 365 Group:
-
Go to the Microsoft 365 Admin Center:
- Open Microsoft 365 Admin Center.
- Sign in with an administrator account.
-
Navigate to Groups:
- In the left menu, select Teams & Groups → Active teams & groups.
-
Click “Add a Group”:
- Select Microsoft 365 and click Next.
-
Set Up Group Details:
- Enter a Group Name (e.g.,
ProjectTeam@company.com
). - Add a description for clarity.
- Select Privacy Settings:
- Public: Anyone in the organization can join.
- Private: Only approved members can join.
- Choose whether to Allow External Senders (if applicable).
- Enter a Group Name (e.g.,
-
Assign Owners and Members:
- Select Owners (Admins/Managers who can manage the group).
- Add Members who will use this group.
-
Review & Create Group:
- Click Create group to finish.
-
(Optional) Configure Additional Services:
- After creation, access Teams, SharePoint, and Planner from the Group settings.
3. Creating a Shared Mailbox
A Shared Mailbox allows multiple users to access, send, and receive emails from a common address.
Steps to Create a Shared Mailbox:
-
Go to the Exchange Admin Center:
- Open Exchange Admin Center.
- Sign in with an admin account.
-
Navigate to Recipients:
- Click Mailboxes in the left panel.
- Select Shared tab → Click Add a shared mailbox.
-
Enter Mailbox Details:
- Name: Enter a name for the mailbox (e.g.,
Support Team
). - Email Address: Set the shared mailbox email (e.g.,
support@company.com
).
- Name: Enter a name for the mailbox (e.g.,
-
Assign Members (Users Who Need Access):
- Click Add members and select the users who should access the shared mailbox.
-
Save and Confirm:
- Click Save to create the shared mailbox.
-
(Optional) Enable “Send As” Permissions:
- In the Exchange Admin Center, go to Mailboxes → Shared.
- Select the shared mailbox, then Mailbox delegation.
- Under Send As and Send on Behalf, add users who should send emails from this mailbox.
-
(Optional) Configure Auto-Reply Settings:
- Go to Exchange Admin Center → Recipients → Shared.
- Select the mailbox → Click Automatic replies to configure out-of-office messages.
Summary of Steps:
Feature | Creation Steps |
---|---|
Distribution List (DL) | Microsoft 365 Admin Center → Groups → Add a Group → Distribution List |
Microsoft 365 Group | Microsoft 365 Admin Center → Groups → Add a Group → Microsoft 365 |
Shared Mailbox | Exchange Admin Center → Recipients → Shared Mailbox → Create |
At Peritos Solutions, we specialize in Microsoft 365 administration, configuration, and integration to help businesses streamline their communication and collaboration. Whether you need to:
✔ Set up Distribution Lists, Microsoft 365 Groups, or Shared Mailboxes
✔ Migrate from on-premise Exchange to Microsoft 365
✔ Optimize Teams, SharePoint, or OneDrive for collaboration
✔ Automate workflows using Power Automate and Microsoft 365 tools
Our certified Microsoft experts can assist you in configuring your environment for efficiency, security, and scalability.
📩 Contact us today to discuss your Microsoft 365 needs!
We often get asked this question hence adding it as a blog for our new and existing customer to understand the concept.
This blog talks about how and when to use the 3 mailbox options. In Microsoft 365 (O365), Distribution Lists (DLs), Groups, and Shared Mailboxes serve different purposes, even though they all enable collaboration and email communication. Below is a comparison to help clarify their differences and use cases:
1. Distribution List (DL)
- Purpose: Used for sending emails to multiple recipients at once.
- Email Storage: No mailbox storage; emails are forwarded to members.
- Access Control: Members cannot access a shared mailbox; they only receive emails in their own inbox.
- Reply Handling: Replies go from individual members, not a shared mailbox.
- Best Use Case: Broadcasting emails to a group (e.g., newsletters, announcements).
- Admin Management: Managed via Exchange Admin Center (EAC) or Microsoft 365 Admin Center.
- Licensing Requirement: No license required.
✅ Pros:
- Simple to set up and manage.
- Efficient for large email broadcasts.
- No additional licensing required.
❌ Cons:
- No central storage of emails.
- Members don’t have a shared mailbox or collaboration tools.
2. Microsoft 365 Group (M365 Group)
- Purpose: Provides a collaboration workspace with a shared mailbox, SharePoint site, Teams, Planner, and other Microsoft 365 services.
- Email Storage: Yes, it includes a shared mailbox.
- Access Control: Members can access the shared mailbox and reply as the group.
- Reply Handling: Replies can come from the group mailbox.
- Best Use Case: Collaborative teams that need a shared workspace for emails, files, and discussions.
- Admin Management: Managed via Microsoft 365 Admin Center or Azure AD.
- Licensing Requirement: No license required unless using premium features.
✅ Pros:
- Integrates with Microsoft Teams, SharePoint, Planner, and OneDrive.
- Supports collaborative tools beyond just email.
- Members can reply from the shared mailbox.
❌ Cons:
- More complex than a simple distribution list.
- Can become cluttered if not managed properly.
🔹 Types of M365 Groups:
- Outlook-based Groups: Used primarily for email collaboration.
- Teams-based Groups: Used for chat and collaboration with Microsoft Teams.
3. Shared Mailbox
- Purpose: A centralized mailbox that multiple users can access to send and receive emails.
- Email Storage: Yes, has its own mailbox storage.
- Access Control: Users must be assigned explicit permissions (Full Access, Send As, or Send on Behalf).
- Reply Handling: Users can send emails as the shared mailbox (e.g., support@company.com).
- Best Use Case: Managing customer service emails, team inboxes, or role-based accounts.
- Admin Management: Managed via Exchange Admin Center or Microsoft 365 Admin Center.
- Licensing Requirement: No license required if under 50GB, but users need an Exchange Online license.
✅ Pros:
- Allows multiple users to access and respond to emails as a team.
- Emails are stored centrally and accessible to all authorized users.
- Supports Send As and Send on Behalf permissions.
❌ Cons:
- Cannot be used for scheduling meetings (no calendar invites).
- Requires explicit permissions management.
- Cannot be accessed directly via Outlook mobile app (must be added via delegation).
Key Differences & When to Use Each
Feature | Distribution List | Microsoft 365 Group | Shared Mailbox |
---|---|---|---|
Purpose | Broadcast emails to a group | Collaboration & shared workspace | Shared email access for a team |
Email Storage | No | Yes | Yes |
Access Control | No shared mailbox | Full collaboration features | Permission-based access |
Reply Handling | Individual responses | Group replies | Send As or Send on Behalf |
Best Use Case | Announcements, newsletters | Teams needing email, files, and collaboration | Customer support, helpdesk, shared team inbox |
Which One Should You Choose?
- Use a Distribution List if you just need to send emails to a group without storing them centrally.
- Use a Microsoft 365 Group if you need collaboration features beyond email (Teams, SharePoint, Planner).
- Use a Shared Mailbox if you need multiple users to manage emails from a central address (e.g., support@company.com).