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Why do emails sent through SendGrid go to spam on Outlook.com, but those from O365 do not?

Summary

Emails sent through SendGrid are more likely to land in Outlook.com's spam folder compared to those from Office 365 due to a combination of factors, primarily revolving around trust, reputation, and stringent authentication requirements for third-party senders. Office 365 emails benefit from Microsoft's inherent internal trust, its robust infrastructure, and the high resilience of its IP and domain reputation within its own ecosystem. Conversely, SendGrid, as an external Email Service Provider, must actively build and maintain a strong sender reputation with Microsoft's filters. This involves meticulous attention to technical authentication like SPF, DKIM, and especially DMARC alignment, which is often handled natively for O365. Furthermore, SendGrid users must manage their IP and domain reputation, which can be negatively affected by shared IP pools or insufficient warming of dedicated IPs. The content of the email, recipient engagement metrics (like open rates and complaint rates), and diligent list hygiene also play significant roles. Microsoft's new bulk sender requirements for external senders further emphasize the need for strict adherence to authentication, easy unsubscription, and maintaining very low spam complaint rates, making it more challenging for SendGrid users to consistently reach the inbox without diligent effort.

Key findings

  • Inherent Trust of O365: Emails originating from Office 365 benefit from Microsoft's inherent internal trust and large, resilient infrastructure, making them less prone to being flagged as spam within the Microsoft ecosystem.
  • Third-Party Reputation Building: SendGrid, as an external sender, must actively earn and consistently maintain a high sender reputation with Microsoft's Exchange Online Protection (EOP) through proper authentication, consistent good sending practices, and low complaint rates.
  • IP & Domain Reputation Disparity: Office 365 leverages highly trusted and resilient IPs, while SendGrid's shared IP pools can be negatively impacted by other senders' poor practices. Dedicated IPs require careful warming to build reputation.
  • Authentication Strictness: While O365 handles DMARC alignment natively, SendGrid users must meticulously configure SPF, DKIM, and especially DMARC with correct alignment for their 'From' domain, as Outlook.com is stringent about these protocols for external senders.
  • Engagement and Content Filters: Outlook.com's filters are heavily influenced by recipient engagement metrics and content analysis. O365 internal emails often have high engagement and less marketing-style content, contrasting with SendGrid campaigns that might struggle if engagement is poor or content triggers spam filters.
  • New Bulk Sender Requirements: Microsoft's new bulk sender requirements (effective February 2024) place stricter mandates on third-party senders like SendGrid regarding authentication, easy unsubscription, and low spam complaint rates, increasing the likelihood of non-compliant emails being sent to spam.

Key considerations

  • Technical Authentication: Ensure comprehensive email authentication, including SPF, DKIM, and especially DMARC alignment, is correctly configured for your sending domain with SendGrid. Outlook.com is very stringent about DMARC for third-party senders.
  • IP & Domain Reputation: Regularly monitor your IP and domain reputation. If using SendGrid, consider investing in a dedicated IP to gain more control over your sending reputation, and meticulously warm it up by gradually increasing sending volume.
  • Email Content Quality: Scrutinize email content for elements that could trigger spam filters, such as suspicious links, excessive images, a lack of text, or spammy keywords. Microsoft's SmartScreen filter is particularly sensitive.
  • Recipient Engagement: Prioritize recipient engagement by sending relevant, valuable content. Low open rates, high delete-without-opening rates, and spam complaints significantly degrade sender reputation with Outlook.com filters. Remove inactive subscribers.
  • List Hygiene: Maintain a clean email list by regularly removing invalid or inactive addresses. Avoid sending to spam traps, as hitting them severely damages your sender reputation and leads to increased spam filtering.
  • Feedback Loop Processing: Ensure SendGrid's processing of email feedback loops (FBLs) is robust. Promptly remove users who mark your emails as spam to prevent further complaints and maintain a good sender reputation with Outlook.
  • Compliance with Microsoft Rules: Adhere strictly to Microsoft's new bulk sender requirements, which mandate robust email authentication, easy one-click unsubscription mechanisms, and maintaining very low spam complaint rates.
  • Monitoring & Diagnostics: Utilize monitoring tools such as Microsoft's Smart Network Data Services (SNDS), Google Postmaster Tools (GPMT), bounce reports, spam trap hit notifications, and inbox monitoring services to diagnose and address deliverability issues effectively.

What email marketers say

11 marketer opinions

Emails sent via SendGrid often encounter deliverability challenges, leading them to Outlook.com's spam folder, while those from Office 365 generally reach the inbox. This disparity stems from Microsoft's inherent trust in its own ecosystem. Office 365 leverages its extensive, resilient infrastructure and highly trusted IP ranges, which are less susceptible to blocking and are automatically aligned for authentication protocols. In contrast, SendGrid, as an external sender, must diligently establish and maintain sender trust and a robust reputation with Microsoft's stringent filters. This involves meticulous attention to technical authentication, particularly DMARC alignment, which Outlook.com heavily scrutinizes. Furthermore, SendGrid users, especially those on shared IP pools, can be adversely affected by the poor sending practices of others, and even dedicated IPs require careful, gradual warming to build a solid reputation. The content of the email itself, recipient engagement metrics, and diligent list hygiene are also critical factors influencing Outlook.com's spam filtering decisions, with Microsoft's SmartScreen filter being particularly sensitive to suspicious elements.

Key opinions

  • Inherent Trust and Infrastructure Advantage for O365: Emails from Office 365 benefit from Microsoft's inherent internal trust, a vast and resilient infrastructure, and highly trusted IP ranges that are less prone to blocking within the Microsoft ecosystem.
  • Reputation Sensitivity for External Senders: SendGrid, as an external provider, must actively earn and consistently maintain a high sender trust and IP reputation with Outlook.com, which prioritizes IP reputation and requires consistent good sending practices.
  • IP and Domain Reputation Dynamics: O365 utilizes a dedicated set of highly reputable IPs, offering greater resilience against reputation damage, whereas SendGrid's shared IP pools can be negatively impacted by other users' poor sending habits; dedicated IPs require careful, gradual warming to build trust.
  • Criticality of DMARC Alignment: Outlook.com is particularly stringent about DMARC, requiring the 'From' address to align with authenticated domains for SPF or DKIM, a process often automatically handled by O365 but a frequent missing piece for SendGrid emails.
  • Engagement and Content-Based Filtering: Deliverability is significantly influenced by recipient engagement, with low opens, high delete-without-opening rates, and spam complaints degrading reputation; moreover, content elements like suspicious links, excessive images, or spammy keywords can trigger Microsoft's sensitive SmartScreen filter.
  • Importance of List Hygiene: Sending to invalid or inactive addresses, or hitting spam traps, severely damages sender reputation, making emails more prone to spam; O365 users typically send to well-maintained internal lists, while SendGrid users need proactive list cleaning.

Key considerations

  • Comprehensive Technical Authentication: Ensure SPF, DKIM, and especially DMARC alignment are correctly configured for your sending domain with SendGrid, as Outlook.com is highly stringent about these protocols for external senders.
  • Proactive IP and Domain Reputation Management: Regularly monitor your IP and domain reputation; if using SendGrid, consider a dedicated IP and meticulously warm it up with gradually increasing volumes, scaling back sends if deliverability issues persist.
  • Optimize Email Content: Scrutinize email content for elements that might trigger spam filters, such as suspicious links, too many images, lack of sufficient text, or spammy keywords, recognizing Microsoft's SmartScreen filter is particularly sensitive.
  • Prioritize Recipient Engagement: Focus on sending relevant, valuable content to foster high engagement; low open rates, high delete-without-opening rates, and spam complaints will rapidly degrade your sender reputation with Outlook.com filters.
  • Maintain Excellent List Hygiene: Regularly clean your email list by removing invalid or inactive addresses and implementing strategies to avoid spam traps, as poor list quality severely impacts sender reputation and increases spam filtering.
  • Process Feedback Loops Effectively: Ensure that SendGrid's processing of email feedback loops (FBLs) is robust, allowing you to promptly remove users who mark your emails as spam to maintain a positive sender reputation with Outlook.
  • Adhere to Microsoft's Bulk Sender Requirements: Strictly comply with Microsoft's guidelines, which mandate robust email authentication, easy one-click unsubscription mechanisms, and maintaining very low spam complaint rates.
  • Leverage Monitoring and Diagnostic Tools: Utilize tools like Microsoft's Smart Network Data Services (SNDS), Google Postmaster Tools (GPMT), bounce reports, spam trap hit notifications, and inbox monitoring services to diagnose and address deliverability issues systematically.

Marketer view

Email marketer from Email Geeks suggests checking technical aspects like SPF, DKIM, and monitoring tools such as SNDS, GPMT, bounce reports, spam trap hits, and inbox monitoring to diagnose deliverability issues.

6 May 2025 - Email Geeks

Marketer view

Email marketer from Email Geeks explains that the difference in inboxing between Office 365 and SendGrid may be due to the lower volume of corporate emails from O365 and O365's large infrastructure, making it less prone to blocking. He also notes Outlook.com's focus on IP reputation and recommends "scaling back" sending volume if deliverability issues persist, even on a dedicated IP.

19 Mar 2024 - Email Geeks

What the experts say

2 expert opinions

Emails sent through SendGrid face increased scrutiny from Outlook.com, often leading to their placement in spam folders, a contrast to the reliable inbox delivery typically seen with emails from Office 365. This disparity arises from Microsoft's highly sensitive, reputation-based filtering and new, stringent bulk sender requirements. As of February 2024, Microsoft mandates strict adherence to email authentication standards (SPF, DKIM, DMARC), easy unsubscription, and exceptionally low spam complaint rates for all bulk senders. SendGrid, as an external, shared platform, is directly subject to these rules. Its deliverability is contingent upon the cumulative reputation of its shared IPs and the individual sending practices of its users. If authentication is lacking, unsubscribe options are unclear, complaint rates are high, or overall sender reputation is poor, emails sent via SendGrid are likely to be flagged as spam. Conversely, emails originating from O365 benefit from Microsoft's internal trust and established reputation management, as they are often internal communications or from highly reputable senders who naturally meet Microsoft's filtering criteria, thus reducing their likelihood of being routed to spam.

Key opinions

  • New Microsoft Bulk Sender Mandates: Outlook.com's February 2024 requirements for bulk senders, including services like SendGrid, mandate strict adherence to email authentication (SPF, DKIM, DMARC), easy unsubscription, and maintaining very low spam complaint rates.
  • Reputation-Based Filtering Sensitivity: Microsoft Outlook's filtering system is highly sensitive and reputation-based, rigorously scrutinizing external services like SendGrid based on sender reputation, content quality, and user engagement metrics.
  • SendGrid's Shared Reputation Challenges: As a shared platform, SendGrid's deliverability relies on the cumulative reputation of its sending IPs; poor sending habits by other users on the same IP can negatively impact individual sender deliverability.
  • O365's Internal Trust Advantage: Emails originating from Office 365 benefit from Microsoft's internal trust and generally strong reputation management, making them less prone to spam filtering compared to bulk mail from external platforms.
  • Authentication as a Primary Filter: Proper SPF, DKIM, and DMARC authentication is a critical factor for deliverability to Outlook.com, with Microsoft being particularly stringent for external senders like those using SendGrid.
  • Content and Engagement Influence Deliverability: Email content quality, overall sender reputation, and user engagement metrics, such as open rates and spam complaint rates, significantly influence whether an email is delivered to the inbox or the spam folder by Outlook.com.

Key considerations

  • Adhere to Microsoft's Bulk Sender Rules: Ensure full compliance with Microsoft's February 2024 requirements for bulk senders, including robust email authentication, one-click unsubscribe, and maintaining extremely low spam complaint rates.
  • Strengthen Email Authentication: Meticulously configure and maintain SPF, DKIM, and DMARC records for your domain, ensuring proper alignment, as Outlook.com is very stringent, especially when sending through SendGrid.
  • Actively Manage Sender Reputation: Monitor your sending reputation closely. If using SendGrid's shared IPs, be aware of the cumulative reputation impact; consider dedicated IPs for greater control and warm them diligently.
  • Optimize Email Content and Engagement: Create high-quality, relevant content that encourages positive user engagement. Low engagement or content that triggers spam filters will negatively impact deliverability to Outlook.com.
  • Implement Easy Unsubscribe: Provide a clear and easy one-click unsubscribe mechanism in your emails, which is now a mandatory requirement for bulk senders targeting Outlook.com.
  • Monitor Spam Complaint Rates: Keep a close watch on your spam complaint rates and take immediate action to remove users who complain, as high rates are a significant red flag for Microsoft's filters.

Expert view

Expert from Spam Resource explains that new bulk sender requirements from Microsoft (Outlook.com), effective February 2024, mandate strict adherence to email authentication (SPF, DKIM, DMARC), easy unsubscription, and maintaining very low spam complaint rates. Emails sent through bulk sending services like SendGrid are subject to these stringent requirements. If a sender using SendGrid fails to meet these, particularly regarding authentication, unsubscribe options, or if their complaint rates are high, their emails are likely to be filtered to the spam folder. In contrast, emails originating from O365 are often internal or from highly reputable senders who naturally align with Microsoft's strict filtering criteria, reducing their likelihood of being flagged as spam.

30 Dec 2021 - Spam Resource

Expert view

Expert from Word to the Wise explains that Microsoft Outlook's filtering system is highly sensitive and reputation-based, which can cause emails from services like SendGrid to go to spam. Key factors include the sender's overall reputation, proper email authentication (SPF, DKIM, DMARC), email content quality, and user engagement metrics. SendGrid, as a shared platform, relies on the cumulative reputation of its sending IPs; if other users on the same IP have poor sending habits or if the individual sender's practices lead to high complaints or low engagement, deliverability to Outlook.com will suffer. Conversely, emails sent from O365 benefit from Microsoft's internal trust and generally strong reputation management, making them less prone to spam filtering compared to bulk mail sent through external platforms.

3 Oct 2023 - Word to the Wise

What the documentation says

4 technical articles

The contrasting deliverability of emails from SendGrid versus Office 365 to Outlook.com hinges on Microsoft's inherent trust in its own ecosystem and the meticulous reputation-building required from external senders. While Office 365 benefits from native DMARC alignment and Microsoft's robust Exchange Online Protection (EOP) automatically trusting internal mail, SendGrid must actively configure comprehensive authentication-SPF, DKIM, and especially DMARC alignment-for its users' domains. EOP assigns a sender reputation score, impacting whether third-party emails reach the inbox or spam. Crucially, SendGrid users must ensure prompt processing of email feedback loops (FBLs) to swiftly remove complainers, as failure to do so rapidly degrades sender reputation and leads to more emails being flagged as suspicious by Outlook.com.

Key findings

  • Exchange Online Protection (EOP) Distinction: Microsoft's cloud-based EOP service inherently trusts emails from O365 tenants, assigning a high sender reputation, while third-party senders like SendGrid must actively establish and maintain a strong reputation with EOP based on factors like IP reputation, domain reputation, and content analysis.
  • Criticality of DMARC Alignment for Third Parties: For emails sent directly from O365, DMARC alignment is often natively handled and trusted; however, when using a third-party ESP like SendGrid, configuring a strict DMARC policy with correct alignment (SPF and DKIM passing for the 'From' domain) is essential to avoid being flagged by Outlook.com.
  • Proactive Feedback Loop (FBL) Management: Proper handling of FBLs is crucial for SendGrid users; when recipients mark emails as spam, the complaint is returned via an FBL, and the complaining user must be immediately removed from future sends to prevent rapid degradation of sender reputation with Outlook.
  • Enhanced Authentication for External Trust: While SendGrid provides some default authentication, configuring your own domain for SPF and DKIM provides better trust and improves sender reputation, which is crucial for preventing emails from going to spam folders like Outlook's.
  • O365's Inherent Internal Trust: Emails from O365 tenants are inherently trusted within Microsoft's ecosystem, simplifying deliverability compared to external senders who must prove their legitimacy to Microsoft's filters.

Key considerations

  • Configure Comprehensive Authentication: Beyond SendGrid's defaults, meticulously configure your own domain's SPF, DKIM, and especially DMARC records with proper alignment to build trust and meet Outlook.com's stringent requirements for external senders.
  • Prioritize EOP Reputation Building: Actively manage your sender reputation with Microsoft's Exchange Online Protection (EOP) by maintaining good IP and domain reputation, ensuring high-quality content, and consistently sending legitimate emails.
  • Implement Robust FBL Processing: Ensure your system, in conjunction with SendGrid, effectively processes email feedback loops and promptly removes users who mark your emails as spam to prevent negative impact on your sender reputation with Outlook.
  • Continuously Monitor Deliverability: Regularly monitor your deliverability to Outlook.com, using tools and analytics to identify and address any issues related to spam placement, ensuring your authentication and reputation efforts are effective.

Technical article

Documentation from SendGrid explains that proper email authentication, including SPF and DKIM, is crucial for deliverability. While SendGrid handles some authentication by default, configuring your own domain for SPF and DKIM provides better trust and improves sender reputation, which can prevent emails from going to spam folders like Outlook's.

22 Jun 2022 - SendGrid

Technical article

Documentation from Microsoft Learn explains that Exchange Online Protection (EOP) is Microsoft's cloud-based filtering service that protects against spam and malware. EOP assigns a Sender Reputation Score based on factors like IP reputation, domain reputation, and content analysis. Emails from O365 tenants are inherently trusted within Microsoft's ecosystem, while third-party senders like SendGrid must establish and maintain a high reputation with EOP to avoid being flagged as spam.

6 Feb 2025 - Microsoft Learn

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