Mercari Japan Launches Full Compensation Buyer & Seller Protection Program - Will US Be Next?
Mercari is launching new initiatives aimed at making their marketplace in Japan a more safe and secure trading environment with enhanced user vetting procedures and a Full Compensation Support Program for both buyers and sellers.
The company's Safety and Security Portal Site builds on recent efforts to improve security for its 23 million monthly users including 24/7 monitoring system, stricter identity verification, and the introduction of passkeys.
But Mercari says beyond site security there are problems that are difficult for customers to resolve between themselves, like issues with items not being described or being received in damaged or defective condition - which is where the Full Compensation Support Program steps in.
The program will review such disputes between users and, if certain conditions are met, Mercari will cover the compensation on both sides - meaning the seller gets to keep their profit from the sale while the buyer is compensated by Mercari for their full payment amount (excluding discounts or coupons).
Overview of the "Full Compensation Support Program"
When a dispute occurs that is difficult to resolve through negotiation between the parties involved, Mercari office will review the details, and if it determines that the conditions are met, we will fully compensate for the purchase price and sales profits.There are no additional fees for using the program.
Scope of coverage
The scope of coverage for full compensation support is as follows. There is no upper limit.
- Seller: Sales Profit
- Purchaser: Payment amount (excluding discount coupon amount)
Any expenses other than those listed above (such as packaging material costs and various fees) are not covered by the Full Compensation Support.
All of that sounds great, but in order to qualify, users will have to meet 5 criteria, including submitting to potentially invasive identity verification and using Mercari Delivery as the shipping method.
Eligibility Requirements
To qualify for full compensation support, all of the following five conditions must be met:
- Simple identity verification (eKYC) is carried out via the app
- You are using Mercari Delivery as your shipping method.
- Contact the office within 14 days from the day after delivery is completed.
- You are using the service correctly and following the "Seller Guidelines" or "Buyer Guidelines"
- You have used the service correctly, including in past transactions, by observing the "Rules and Manners" and "Terms of Use"
The compensation program applies only to transactions on or after July 1, 2025, items sold through Mercari Shops are not eligible, and neither are items covered by Mercado Gold benefits (shopping insurance) or if a warranty with an optional service is applied.
While this program is currently only being offered on Mercari Japan, the company faces many of the same problems both in fraud and site security as well as disputes between users on their US marketplace.
Liz Morton
US users also report they are increasingly being forced to verify their identities, including providing biometric data through Mercari's partnership with Jumio, which could be a first step toward introducing a similar protection and compensation plan here as well.
Liz Morton
While marketplace sellers have begrudgingly become accustomed to identity verification requirements due to the INFORM Consumers Act and other legislation/regulations, buyers may balk at having to undergo invasive security procedures before completing a purchase - which could cause them to abandon cart and move their shopping activity to competing marketplaces.
Would you like to see this Full Compensation Support Program extended to Mercari US and would you be willing to submit to biometric verification to qualify? Let us know in the comments below!
