Netlify Functions Can't find module

I’m trying to use netlify and its lambda function feature to run a node function with dependencies. Based on Using Netlify Forms and Netlify Functions to Build an Email Sign-Up Widget | CSS-Tricks - CSS-Tricks , I have in my functions/submission-created.js:

const fetch = require('node-fetch');

exports.handler = async event => {

    const email = JSON.parse(event.body).payload.EMAIL
    const asking = JSON.parse(event.body).payload.ASKING
    console.log(`Recieved a submission: ${email}`)
    ....

When I look under my netlify websites functions tab , I see:

11:40:35 PM: 2020-12-02T04:40:35.092Z	undefined	ERROR	Uncaught Exception 	{"errorType":"Runtime.ImportModuleError","errorMessage":"Error: Cannot find module 'node-fetch'\nRequire stack:\n- /var/task/submission-created.js\n- /var/runtime/UserFunction.js\n- /var/runtime/index.js","stack":["Runtime.ImportModuleError: Error: Cannot find module 'node-fetch'","Require stack:","- /var/task/submission-created.js","- /var/runtime/UserFunction.js","- /var/runtime/index.js","    at _loadUserApp (/var/runtime/UserFunction.js:100:13)","    at Object.module.exports.load (/var/runtime/UserFunction.js:140:17)","    at Object.<anonymous> (/var/runtime/index.js:43:30)","    at Module._compile (internal/modules/cjs/loader.js:1015:30)","    at Object.Module._extensions..js (internal/modules/cjs/loader.js:1035:10)","    at Module.load (internal/modules/cjs/loader.js:879:32)","    at Function.Module._load (internal/modules/cjs/loader.js:724:14)","    at Function.executeUserEntryPoint [as runMain] (internal/modules/run_main.js:60:12)","    at internal/main/run_main_module.js:17:47"]}

my package.json (after running npm init):

{
"name": "site",
"version": "1.0.0",
"description": "",
"scripts": {
  "test": "echo \"Error: no test specified\" && exit 1"
 },
"author": "",
"license": "ISC",
"dependencies": {
  "dotenv": "^8.2.0",
  "node-fetch": "^2.6.1"
}
 }

The package structure looks like:

enter image description here

here is the repo :

https://github.com/kc1/test2

I’ve tried putting the node modules folder and package.json in multiple places and repushing the repo, but I’m still getting the error above. What am I doing wrong?