Economies of scale exist but they aren't a given. You can't just grow your sales and automatically have a lower cost structure. Amazon actually learned this the

Economies of scale exist but they aren't a given. You can't just grow your sales and automatically have a lower cost structure. Amazon actually learned this the hard way, and they've had to relearn the same lesson multiple times. It is extremely common for people to overestimate how much they can lower their cost structures at scale, and to be caught off guard when they actually achieve that scale. Amazon Fresh tried the "scale your way to cash neutrality" approach, but ultimately it was price increases that made it sustainable enough to roll out to other cities.