I originally saw this idea from a seller who sells on Amazon — but the more time I spend inside TikTok Shop, the more I realize something shocking:

Marketplace platforms all operate by the same underlying logic.

Different UI, different tools, different cultures…
But the structure of how they treat sellers?
Almost identical.

People think they’re competing with peers —
same category, same creators, same promos, same GMV Max tools.

Yet two sellers running nearly identical inputs end up with wildly different outcomes.

Why?
Because you’re not in the same tier.
And the platform does not treat all sellers equally.

The Amazon seller who originally shared this called them “Three Tiers.”
And when you map them to TikTok Shop, the parallels are almost one-to-one.

Below is the adapted framework — rewritten through the lens of TikTok Shop.

Tier 1 — The Moat (Amazon) → The Cold Start Layer (TikTok Shop)

This is where the platform is evaluating, not rewarding you.

Amazon calls this the “Moat,” the outer ring where you’re being tested.
On TikTok Shop, this is the Cold Start phase.

The platform is asking three things:

1. Are you willing to invest?
Inventory → creator seeding → affiliate bonuses → ads → promos.
If you don’t invest early, the platform treats you like noise.

2. Are you stable?
Late shipments, high refund rates, SPS issues — these kill you instantly.

3. Are you going to stick around?
Most sellers quit quickly.
The platform isn’t going to waste traffic on someone who disappears in 30, 60 or even 90 days.

You’ll experience the same symptoms Amazon sellers report:

• High investment, low return

• High shop volatility

• Constant shop violations esp no support to remove violations

• Every mistake is disproportionately expensive

• You constantly question if you should give up on this channel

Amazon calls it “the screening phase.”
TikTok Shop has the exact same filtering logic.

Your job in Tier 1 is not to scale — it’s to survive.

Tier 2 — Inside the City (Amazon) → The Emerging Seller Layer (TikTok Shop)

This is where the platform gives you a little more visibility — but also a lot more chaos.

Amazon sellers describe Tier 2 as the moment when things start to move… and the trouble increases.

On TikTok Shop, you feel the shift:

What changes in Tier 2?

✔ More orders

Daily GMV starts rising:
3–5 → 10–20 → 20–30 orders per day.

✔ Some organic traffic appears

You’re not fully algorithm-supported yet — but things start to pick up.

✔ Creator momentum builds

More creators request samples.
Some creators post without being asked.
Affiliate conversions become more predictable.

✔ GMV Max achieves stability

Your ads don’t look as painful.
CACs get healthier.
ROI becomes average instead of terrible.

✔ SPS + operations get stress-tested

Refunds increase, disputes pop up, violations appear.
TikTok is testing your ability to handle real volume.

Just like Amazon’s Tier 2, this is where:

• You’re getting rewarded

• But you’re also being tested

• And the stress spikes

Most sellers quit here.
Not because they lack product-market fit —
but because they underestimate the chaos of this tier.

Tier 3 — The Castle (Amazon) → The Platform-Preferred Seller Layer (TikTok Shop)

This is the level every seller wants to reach —
where the system finally works with you, not against you.

Amazon sellers describe Tier 3 as entering “the Inner Palace.” The platform assigns you structural advantages.

On TikTok Shop, this translates directly into:

1. Structural Organic Traffic

The algorithm now feeds you.

• Strong placement on search

• High trust scores

• Repeat customers

• Sticky category ranking

• Creators voluntarily promoting you

• Organic GMV is a bigger portion of your shop GMV

This is the first time where scaling becomes easier.

2. Ads Become System-Driven

Your GMV Max performance stabilizes.
You’re no longer forcing results —
the platform is now supporting your spend.

3. Your Brand Gains Authority

Your brand gets searched.
Customers come back.
Creators proactively want to work with you.

4. You’re Isolated From the Lowest-Tier Chaos

Just like Amazon protects Tier 3 sellers from hijackers,
TikTok Shop quietly separates you from low-quality traffic and low-quality competitors.

Your environment becomes “cleaner.”
Your conversion rises.
Your customer quality improves.

You’re no longer driving the system —
the system is driving you.

The Core Truth Across Amazon & TikTok Shop

Every marketplace — Amazon, TikTok Shop, Walmart — is designed around seller stratification.

Understanding your tier is the real unlock.

Tier 1 — The platform filters you

“Should we even allocate traffic to you?”

Tier 2 — The platform tests you

“Can you handle real business pressure?”

Tier 3 — The platform partners with you

“You’ve proven you can generate value — now we support you.”

On the surface, everyone is doing the same things:
same creators, same promos, same ads, same category.

But the exposure, traffic quality, conversion rate, and ad efficiency you see
are not random.

They are assigned based on your shop tier.

That’s why two shops doing the exact same strategy get completely different outcomes.

The takeaway:

You’re not competing with other sellers.
You’re competing within your tier.

Understand the tier you’re in → and you finally understand what the platform is trying to tell you.