How do online stores retrieve and account for stolen merchandise that is delivered to customers? Insurance?

I drop ship merchandise to my customers via USPS directly from retailers. If this merchandise is stolen before the customer gets it, who is liable, me or the retailer? What happens next? Do I have to get insurance for theft? Who has experienced stolen deliveries from your online store and how did you remedy it?
How do online stores retrieve and account for stolen merchandise that is delivered to customers? Insurance?
If the merchandise was stolen from the shipper while en route the shipper's insurance will pay for the loss. If the merchandise was stolen before it was shipped, the company still has to ship the merchandise that was ordered. The company is responsible for it until the shipping company has it. If the shipping company can show proof of delivery to the correct delivery address, then whoever received it is responsible for it. Insurance typically isn't for theft, it for loss or damage during shipment. Loss is different from theft even though it might appear the same. Often the difference between loss and theft is just knowing that it was stolen and not misplaced somewhere in shipment.
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