Distribution List vs. Shared Mailbox: What's Best?

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Confused about whether to set up an email distribution list or a shared mailbox? Read our article to find out which option is right for you.

Did you know that over 124.5 billion business emails are sent and received every day?

Email has become the most important tool for facilitating communications with employees and connecting with clients.

The Public Relations Society of America (PRSA) and theEMPLOYEEapp by APPrise Mobile have revealed some astonishing figures about how emails have become indispensable in business communications. It has been found that despite having access to social media and trendy messaging apps, a staggering 95% of businesses depend on email as their primary mode of communication.

Furthermore, 69% of the participants in the survey believe that email is still the most effective way to communicate with their workforce.

On average, a typical corporate employee has to engage in 110 email exchanges on a daily basis. Now, that’s a lot of ‘hellos’, ‘updates’, and ‘catch-ups’!

So how do you stay organized and avoid the chaos from a rapidly growing inbox?

The solution is to set up a distribution list or shared mailbox. But how can you tell which is well-suited for your organization?

In this article, we’ll explain the benefits and differences between distribution lists and shared mailboxes so that you can decide which option is right for you.

What is a Distribution List?

A distribution list is an invaluable tool in today’s digital world, allowing businesses to streamline communication with clients and team members.

In essence, it is a feature within email programs that enables users to maintain a list of email addresses and send messages to everyone on the list simultaneously. By employing distribution lists, businesses can more effectively engage leads, prospects, and existing customers with personalized content, promotions, and offers. It also provides time-saving benefits by building an email list, avoiding the need to manually enter multiple recipient addresses, and ensuring your message reaches all intended recipients much more efficiently and to a schedule if desired.

Personal distribution lists are designed to deliver information without starting a discussion with the receipts. This makes distribution lists an excellent option for reporting internal company updates, committee meetings, newsletters, or contacting people who want to hear from you regularly. Shared distribution lists can be created on an email server that can be shared between users.

How to Set up a Distribution List in Microsoft 365

Email client programs like MS Outlook offer an email distribution list feature. Follow these steps to create a new distribution list in Microsoft Outlook:

  1. Click on ‘Find’ in the top right corner of Microsoft Outlook.
  2. Go to the address book.
  3. Click on the ‘File’ tab and choose ‘New Entry’.
  4. Select ‘New Contact Group’ to create your email list.
  5. Click on ‘Add Members’ and select ‘From Outlook Contacts’. You will then be able to see all your Microsoft Outlook contacts and add the ones you want to include. Hold the CTRL key and add all the contacts you want to include in your email distribution list.
  6. Select all the email addresses you want to add, click ‘Members’, and then click ‘OK’.
  7. Now, choose a name for your email list.
  8. Click the ‘Save and Close’ button.

You’ve successfully created an email distribution list in Microsoft Outlook.

Advantages

Some of the main advantages of the distribution list are:

  • Efficiency: They allow for prompt communication with a large number of recipients simultaneously, eliminating the need to manually enter each email address.
  • Time-Saving: These lists dramatically reduce the time required for sending repeated communications to the same group of contacts.
  • Organization: Distribution lists provide an organized, efficient way to group and categorize contacts based on your preferred criteria, such as by department, project, or interest.
  • Control: For personal distribution lists, the sender has complete control over the contact list, permitting easy management of subscribers, including additions, removals, or updates.

Disadvantages

  • Collaboration: Sending copies of every message to the entire team can lead to cluttered inboxes.
  • Spam Filters: Emails sent to a large group of recipients are often flagged by spam filters, which can lead to delivery issues. Technology such as DKIM and DMARC can cause issues with email delivery, depending on the sender.
  • Privacy Concerns: If not utilized correctly (for instance, using CC instead of BCC), distribution lists can lead to privacy issues by potentially revealing all recipients’ email addresses.
  • Limitations: Some email platforms have a cap on the number of recipients you can include in a single email or on the total number of emails you can send per day.

Example

For instance, if you want to email your employees, Ben, Jennifer, and Tamara, about an upcoming company meeting. If you’re using a traditional mailing method, you must manually enter multiple email addresses every time you want to reach out to a group (e.g., ben@company.com, jennifer@company.com, tamara@company.com). This is time-consuming and not efficient.

You can simplify the process by adding these emails to a "business team" distribution list. Then, all you need to do is email at businessteam@company.com, and everyone in the group will receive the email.

The finance, customer support, or human resources teams typically manage the distribution lists. Examples of distribution list emails include support@company.com or hr@company.com.

What is a Shared Mailbox?

A shared mailbox is an email account accessible to multiple users for reading and sending emails. Unlike a distribution list, where emails are sent to a group of people without the option to reply, shared mailboxes allow users to respond to messages. Additionally, anyone with access to the mailbox can see those responses.

Companies can use email services such as Outlook or Gmail to create a defined shared mailbox. It involves creating an email inbox with a unique email address and inviting individual users to access it.

Unlike a regular email account, the shared mailbox is not linked to one specific user. Instead, it’s associated with all the accounts that have been granted access to it. Users log into their personal email accounts, and an administrator gives them permission to access the shared mailbox.

How to Create a Shared Mailbox in Microsoft 365

Follow these steps to create a new email distribution list in Microsoft Outlook:

  1. Sign in with a global admin account or Exchange admin account.
  2. In the admin center, go to Teams & Groups > Shared mailboxes
  3. On the Shared Mailboxes page, select + Add a shared mailbox. Enter a name for the shared mailbox.
  4. Select Save Changes. It may take a few minutes before you can add members.
  5. Go to Next steps, and select Add members to this mailbox.
  6. Select the Add Members button. Select the people who you want to use this shared mailbox.
  7. Select Add and then Close.

You’ve successfully created a shared mailbox in Microsoft Outlook.

Advantages

Using shared mailboxes can thus significantly enhance team communication, providing a streamlined, efficient, and collaborative approach to email list management.

Some of the major benefits are:

  • Collaboration: Shared mailboxes let multiple users work together seamlessly by sending and receiving emails from a common account, fostering teamwork.
  • Unified Identity: They present a single point of contact for customers or external parties, making your organization’s communication more professional.
  • No Extra Cost: In most email services like Microsoft 365, shared mailboxes do not require a separate license, making them cost-effective.
  • Easy Management: Shared mailboxes can easily be managed by administrators who can add or remove users as needed.

Disadvantages

While shared mailboxes offer better email organization than distribution lists, disadvantages exist. These include:

  • Lack of Privacy: By design, all users can view all emails sent and received, even those not intended for them. This could lead to privacy issues.
  • Responsibility Unclear: It’s often challenging to determine who should respond to a particular message or inquiry, leading to missed or duplicated task execution.
  • No Audit Trail: Shared mailboxes don’t typically offer an audit trail of who sent which email, making accountability difficult.

Example

Let’s consider the previous scenario involving the distribution list.

For example, if Ben, Jennifer, and Tamara were given access to the businessteam@company.com shared mailbox, they would each be able to view and respond to emails sent to that address.

A major distinction between a shared mailbox and a regular mailbox is that the shared version allows multiple people to interact with it using their credentials. In contrast, a regular mailbox relies on a single username and password.

By logging in with their personal email addresses, members of the shared mailbox can respond to emails. They can reply from “the business team” or individual team members like “Ben, Jennifer, or Tamara” on behalf of the business team.

Comparison of Distribution Lists and Shared Mailboxes

The difference between a distribution list and a shared mailbox is quite apparent. But, the objective is the same for both as it can improve communication and streamline team collaboration.

A distribution list works well when there’s no need for communication among the members in the email list. Distribution lists are ideally suited for internal announcements, newsletters, scheduled company meetings, or other notifications.

Simply put, a distribution list facilitates the dissemination of information to people on the list. It is not meant for collaboration with other team members, as there is also no way to respond to emails. If you need collaboration, a shared mailbox could be the better option.

Shared mailboxes are excellent for group communication, where everyone needs to respond to conversations simultaneously. With this setup, everyone can view incoming emails, and multiple members can access the inbox at the same time.

This makes shared mailboxes ideal for teams collaborating on projects. Furthermore, with shared mailboxes, team members can track, read, and respond to emails, facilitating seamless collaboration between members.

Whether you opt for a distribution list or shared mailboxes—know that both have their own unique advantages and disadvantages; you may use either one or both depending on the email requirements of your organization.

Distribution List vs. Shared Mailbox: Which is Best for Your Business?

Distribution list vs. shared mailbox—Which one should you choose for your company? The decision between distribution lists and shared mailboxes will vary based on factors such as the organization’s size and specific goals for group communication.

Both email solutions have pros and cons and help businesses streamline communication and enhance collaboration.

For larger businesses, where multiple teams need to collaborate simultaneously on projects, and there is a need to track communication—shared mailboxes are the best fit.

On the other hand, if the primary goal of a business is to broadcast emails or notifications across a distributed team—distribution lists may be more appropriate.

Seamless communication and coordination among team members are critical for businesses in customer support, sales, or other customer-oriented projects. In these scenarios, companies should use shared mailbox methods as it is critical for their operations.

On the other hand, if your main objective is to disseminate information without expecting replies, a distribution list is more suitable.

Now let’s talk expenses.

Creating distribution lists is affordable, while shared mailbox solutions may cost slightly more. That is understandable, as shared mailboxes are focused on collaboration, whereas distribution lists primarily serve as message forwarders.

If you’re looking for an email solution to manage team communication, Simplelists offers the best-in-class options. With Simplelists, you can easily create, manage, and customize your distribution list or shared mailbox according to your team’s needs.

Try Simplelists products today to see why we are the top-rated email solution for businesses worldwide!

Improve email communications within your business with Simplelists

Distribution list vs. shared mailbox has been debated among businesses looking to streamline their email communications.

Distribution lists and shared mailboxes both serve different purposes. Both methods can significantly affect your team’s efficiency and collaboration. Distribution lists are best for one-way communication, whereas shared mailboxes shine in promoting collaboration. Which email solution is well-suited for your business depends entirely on the organization’s specific needs and objectives.

Simplelists is the top-rated email solution for businesses and is a perfect choice if you’re looking to improve your team’s communication and collaboration. With Simplelists, you can easily set up a distribution list or shared mailbox and customize it according to your team’s needs.

If you want to know more about improving your organization’s group email communication, contact Simplelists or sign up for a 1-month free trial.

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