The node_modules one is rubbish IMO, I think their doco is absurd. You can just compile things down using webpack or such, this makes the package smaller and can be optimized for faster execution as well.
The retry one is new to me, need to read more about it.
> Why would you upload node_modules It is required to: http://docs.aws.amazon.com/lambda/latest/dg/nodejs-create-de...