A shared mailbox is a team inbox people log into and reply from (like info@yourbusiness.com); a distribution list just forwards a copy of each message to everyone's own inbox. Use shared mailboxes when several people need to see and manage the same conversations, and distribution lists for simple broadcast messaging. Shared mailboxes are free with most M365 plans up to a storage limit.
Coach's tip: don't turn every group into a shared mailbox — they add clutter to everyone's Outlook if left permanently open.
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