Why Do Companies Charge Extra for Delivery?

Imagine you're selling toys, and someone orders just one toy. You have to drive all the way to their house for that single toy, it costs a lot of time and money. But if they buy ten toys at once, it’s easier and cheaper to make one trip. So companies charge more when you order fewer things because they cost more to deliver.

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Examples

  1. A toy store charges $3 extra if you buy only one toy but just $1 if you buy ten toys at once.

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