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Amazon is search-driven commerce: sellers set prices, manage listings and ads, and enjoy higher average order values and margins — but referral fees (about 15% in most categories), FBA fulfillment and advertising cost more, and getting a product off the ground (initial inventory + ad budget) usually starts at $20-50. Temu is a managed marketplace: in the full-managed model you are paid a wholesale supply price with no explicit commission, while semi-managed charges an 8%-15% category commission. Temu controls traffic and price bands, and the barrier to testing a product is low (often just $5-20 in cost), making it a volume play.
The traffic logic is completely different. Amazon is "people finding products" — keyword rankings and conversion rates drive stable but highly competitive traffic; TikTok Shop is "products finding people" — recommendation algorithms and content exposure can make a new product explode overnight, but sales depend on continuous content and creator promotions. On fees, TikTok Shop's base commission (6%, 5% on jewelry and groceries) is lower than Amazon's referral fee, but you must also budget creator commissions and content production costs.
Rough numbers: Amazon — referral fee about 15% in most categories plus FBA fulfillment (about $3-8 per unit) and storage; TikTok Shop — commission 6% (5% on jewelry and groceries; limited-time discounts for new sellers) plus $3-6 per unit in logistics and creator commissions; Temu — full-managed has no explicit commission or storage fees (the platform earns the spread between supply and retail prices), semi-managed charges 8%-15% by category. All-in platform cost as a share of sales (commission + fulfillment): Amazon roughly 25%-35%, TikTok Shop 15%-25%, Temu semi-managed 10%-20%, with full-managed costs embedded in the supply price.
Quick guidance: Amazon — sellers with supply-chain advantages who want to build a brand and target mid-to-high price points; Temu — factory sellers clearing inventory or competing on low prices and volume; TikTok Shop — sellers with content creation or creator resources who want to test new products fast. When unsure, run the same product through the platform comparison tool and the Temu profit calculator to compare net profit before deciding.