Trading places
It claims the online stores accumulate a reputation based on long-term service and this is why it forbids transfers, because it cannot guarantee the reputation is deserved when a new owner takes over.
Ning says the biggest risk is that the seller changes the Alipay password and takes back the store after agreeing to a deal. In such cases the buyer has to take legal action, which takes time, though the action is likely to be successful.
However, Zhang Yanlai, a lawyer and researcher at China E-Business Research Center, says because the owner has a legal agreement with Taobao.com not to transfer the store without consent, a private transfer violates this agreement.
He says the contract between buyer and seller only has legal validity between the two parties involved. If the store buyer sells prohibited goods, the seller is technically responsible.
Chen Yuxin, a visiting professor from China Europe International Business School, says change is inevitable.
"It's just like physical store transfer. The demand for online store transfers is very strong and Taobao can't avoid it. They should be open about it and make it transparent," he says.
Chen adds Taobao should allow owners to open online stores as companies so it is easier to transfer stores, as the online store is more about a company brand's reputation than an individual brand.
"There should be a regulation that one must post an online notice to tell customers about the transfer. If not, there may be doubts about ownership and it may affect Taobao's acclaimed credit mechanism," he says.
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