Companies are scrambling to speed up delivery to compete with Amazon even if this means smaller margins. They would rather make less than let Amazon get the sale.
Last week I called for accepting smaller margins and in turn had a sales rep say he wished I understood my retailers better. He said that they can't afford smaller margins. Well, it's not about wanting to make smaller margins. I don't wish for smaller margins any more than the retailer or the rep. Smaller margins are going to be a requirement until Amazon decides it doesn't want to make the smallest margins. Now that Walmart, Amazon, Target, and essentially all the majors have cut their margins (via offering free or low cost expedited shipping), indie stores will likely have to match them or lose the sale. Before it was just a matter of losing an order to Amazon. Now the indie store will lose the sale to lots of other large stores if it doesn't accept a smaller margin. The tide is now overwhelming.