I almost hate to ask this... but... don't you think that Fabric.com has hurt all other sellers, including folks who sell on eBay? I know a lot of you love buying from them because of the free shipping deal. Since they are owned by Amazon, well, they can get prices from UPS that nobody else does. It's not hard to connect the dots, and see what's happening.
Amazon put out of business lots of little local bookstores (I still miss our "Borders" stores). Don't you think that the same thing is going to happen to all the little fabric sellers, too? We might be able to compete on the price-per-yard, but there's no way that we can compete with their %off coupons, and the free shipping on top of that.
The fabric manufacturers are aware of what's going on - it's been a hot topic at Quilt Market (the trade show) - but based on my conversations with several of the manufacturers, it does not seem that they care. Perhaps it is just as good for their bottom line if they sell only to Fabric.com and the chain stores, rather than to numerous small businesses.