It's not a C2C (Consumer to Consumer) side, it's a good B2C (Business to consumer) side.
Living in China for some years it helped me a lot to find products and to compare prices. I bought lots of stuff through the taobao portal (mainly electronics) but only from suppliers with good reputation
If you get cheated in one way or another, there are ways to let the taobao staff know and they will ban this business in the future from advertising at taobao
In oder to avoid being baned, the business who ripped you off quickly returns your money without questions asked.