Honor System?

That can happen - but you have tracking numbers that show delivery...or should have tracking numbers.

You can find lots of reasons for not doing something new. Paralysis by over-analysis is quite common with people new to eCommerce.

Trust that the process works. There are many people making money online and sure, once in a blue moon a bad apple does something to undermine your efforts but they are a very rare exception - not a rule.

As Kay suggested, you do get tracking numbers but those can be disputed. If you want absolute protection, have all packages sent with signature required from the recipient. That'll cost you more to ship and may not be worth it, depending what you are sending, how much profit you make and how common fraud is.

In some industries (small electronics - phones, drones, etc.), this type of fraud is extremely common. That's why you'll never find a company sending those things without a signature required. They learned real fast! Most industries it is not the case.

At the beginning, I'd just send things normally and adjust if your products tend to be ones that are prone to this type of fraud. I'd say we've only had 1-2 sites where we had to send signature delivery out of more than 150 we have owned.

One final note ... WHERE you ship to also dictates how you handle this. Some countries are far more prone to fraud than others.

Pay for tracking and also verify signature.