The parcel delivery service continues to grow as the EC market expands. Previous research has showed that there are economies of scale in parcel delivery service network. However, there are some cases observed that do not indicate that the profit margin of parcel delivery service providers is increasing due to the increase of EC cargo volume. This study examines the increase of large distribution centers on the parcel delivery service network from the perspective of economies of scale. As a result, we discuss the possibility that an increase in cargo volume from large distribution centers do not lead profitability for parcel delivery service providers.
