Indeed, fraud and shrinkage are costs of doing business for practically any enterprise. My worst experience was being a nice guy and accepting a personal check, which of course bounced, so I was out my cost-of-goods plus an additional fee from the bank.
My main protection is that my cost-of-goods is about 1/5 of my selling price. Also, it's a niche market product that would probably be hard to re-sell. Because of my healthy mark-up, I can afford to handle practically any dispute by offering a prompt refund.
It's tougher if you're not a retailer, but an individual selling a few items, in which case you don't have a mark-up or the law of averages to fall back on.
My main protection is that my cost-of-goods is about 1/5 of my selling price. Also, it's a niche market product that would probably be hard to re-sell. Because of my healthy mark-up, I can afford to handle practically any dispute by offering a prompt refund.
It's tougher if you're not a retailer, but an individual selling a few items, in which case you don't have a mark-up or the law of averages to fall back on.