I think the answer is:

> You can’t yet order Vernon Downs directly from your local bookstore because the distributor that fills those orders would also have to fill orders to Amazon.

I'm guessing that there are no medium or large distributors that avoid amazon

Exactly. I don't understand this article. The author doesn't really explain what Amazon is doing wrong other than an oblique mention of "Amazon’s discounting policies".

How can Amazon sell a book against the publisher's wishes? If true, that's the real story here.

Maybe the intended audience is already familiar with that part.