Publishers expect authors to format manuscripts to industry standards. Since publishing houses and literary agents receive more manuscripts than they can read, correctly formatted manuscripts have a higher chance of acceptance. Many authors are not interested in doing their own formatting and are happy to hire professionals to do it for them.
This formatting service is intended to produce a Word .docx file you can then send to a literary agent, an acquiring editor at a publisher, or other industry professionals. This file is not intended to be a “final layout” for sending to a printer or uploading to an online retailer of ebooks for sale.