shipping for marketpress (etsy style network option)

hi,
just inquiring about the "etsy style network option" for "Market Press".
how is shipping handled ?
the new store owner fills out their address details when crating a store ?
they are responsible for calling shipping company to pick up goods at their location ?
in this ("etsy style network option") environment the payment is made before product ships ?
- i assume this is the case, so what happens if product does not arrive etc. the customer deals directly with that store owner as the store owner would solely be responsible ?

as much information on this set up would be greatly appreciated !!!

kind regards.