There is no best way to handle this kind of situation.
If it happens to you before, then why don't you block that id?
When this kind thing happens, you should always block those buyers. Note down their mailing addresses somewhere, set up some filters in your email. Next time, if the same guy purchases from you again let's say using a different ID different email address, the same shipping address will still be flagged in your email, so you don't even bother to ship the product. just tell him it's out of stock/back-ordered, or some nice story, refund the payment and block him.
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