For my smaller version that is about 12" tall, I used 3 wood clock faces from Michael's. They are in with all of the wood burning and other wood things. I actually wanted to make 1 more tier with a huge wood slice, but they didn't have any. I also planned on using branches instead of a dowel, but it just got too cold and snowed before I could go out into the yard and cut some. So, I just used a dowel to make the supports. I screwed them into the wood slices after pre-drilling the holes. The whole project could use a few coats of sealant, but I need to wait for slightly warmer weather to seal it.
Here you can see the leaf hammock bed and the tiny blanket and pillow I made from felt. I just hot glued the hammock onto the posts.
One additional element you cannot see is the little ladder that the fairies can climb to get from one level to the next. Kamille has been playing with this little house everyday. It seems much sturdier than the plastic cottage. Plus, there is some room for imagination. It doesn't talk or light up or sing. It is 100% powered by creative play. Also, the project was more in the range of $30.00, rather than $130. It may not be as fancy, but it also doesn't take up half of her room.