Developmental editing addresses structure, narrative arc, argument logic and chapter organisation. It is necessary when the manuscript has fundamental issues with how it is built — weak structure, unclear argument, pacing problems. It is not required for a well-structured manuscript.
Copy editing addresses sentence-level clarity, consistency, grammar and style. It is required for virtually every manuscript that did not go through multiple drafts with rigorous self-editing. Most manuscripts benefit from copy editing even when the author is a strong writer.
Proofreading addresses typographical errors, spelling and punctuation after the final text is set. It is the minimum any manuscript should have. A book with no proofreading will contain errors that readers notice and report in reviews.
A negative review citing editing quality appears in your Amazon listing and cannot be removed. A book with five reviews averaging 3.2 stars because of "typos throughout" and "needed an editor" is effectively unsellable. Every reader who considers buying your book sees those reviews.
The one-time cost of copy editing and proofreading ($500 to $1,200 depending on manuscript length) is significantly less than the permanent sales damage caused by preventable negative reviews. Editing is not a luxury cost. It is the insurance that protects your book's commercial life.
Self-editing is valuable and recommended regardless of whether you hire a professional editor. Reading your manuscript aloud catches awkward sentences that the eye skips. Multiple read-throughs catch repetition and inconsistency. Sending your manuscript to trusted readers for feedback addresses structural and clarity issues. None of this replaces professional editing but it reduces the scope and therefore the cost of professional editorial work significantly.