To remove worries about the security of online shopping and to attract more of netizens to join online shopping, Taobao.com has launched a new service called "Advanced Compensation by Seller".
Taobao.com has tested the service in parts of its website, but this time it will implement the mechanism for the entire website.
Under the Advanced Compensation by Sellers mechanism, qualified sellers who open a store at Taobao.com pay a certain amount of money as a deposit for their goods. When the goods cause disputes, Taobao.com will use the money in escrow to compensate the buyer on behalf of the seller.
In order to make sure that the service can work effectively, there are some requirements for the sellers who want to join into the service. The requirements include that sellers must open a store on Taobao.com for at least three months, they must maintain at least three-star service levels and receive good comments from 97% of their buyers.