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To identify customer requirements regarding e-retailing service failures, this study applied Kano’s model to sort the e-retailing compensation elements into various categories for identifying the key elements, maximizing customer satisfaction and minimizing customer dissatisfaction based on investigation of the sample of 167 e-retailing customers. The result indicates that a psychological compensation is the basic requirement of e-retailing customer and a refund can improve customer satisfaction when any service failure is occurred. Moreover, an economic compensation is indifferent for a dissatisfied customer. The result can help the e-retailer to understand what different compensations would have diverse effects on customers and provide effective guidelines to reduce customer’s dissatisfaction caused by the service failure.