i think third party escrow is kinda dangerous, as you don't really know the other party. In the case of Letter of Credit, at least you know the other party is well represented by a trustworthy bank, and could rely on the due diligence done by the bank to assume that the other party is at least a company with xxx capital...

for escrow service, what can the website tell you regarding the other party? what if you never receive the goods? how is the dispute proceeding like? the escrow hold the money forever?