Why is email so expensive?

I have an internal mail system, that will email the user when ever they
receive an email.  Let say that I have 100,000 users that receive one email
a day.  That is $10 per day in email cost alone.  This seems extremely high
cost.  I think I might have 10 times that amount of email, which would mean
$100 per day.

How are other people handling this kind of scenario?

Thanks,
Jeffrey

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