Yes there is some escrow services existing but i think it would be better to create one that is much better and everybody Will trust this service.
No, it won't work perfectly where I am or maybe where you live. Why use Escrow services when sellers and buyers can see each other face to face. Even if online transactions occur, buyers can use the payment method if the goods are already at their doorstep by cash on delivery (COD).
One of the advantages of the cash on delivery payment method is that it can minimize the buyer's losses, besides that COD can reduce the risk of the ordered goods not reaching the buyer's hands. For example, the seller is not convincing in selling his goods or there are indications of fraud.