How do returns and refunds work for e-commerce stores?

Returns and refund management is streamlined for both you and customers. Features include: customer-initiated returns (through account portal), return reasons tracking (why returned? helps improve), automatic RMA number generation, return shipping labels (optional), refund processing (full/partial refunds), store credit option (instead of refund to card), restocking workflows (inspect returned item, restock if good), exchange handling (return for different size/colour), and return analytics (return rate by product). You set return policy: timeframe (30 days), conditions (unworn, tags attached), who pays shipping, and what qualifies for refund vs store credit. Clear return policies increase conversion - customers buy confidently knowing they can return. The system tracks return rates helping identify problematic products. Automated emails confirm return received and refund processed. Average e-commerce return rate is 20-30% for apparel, 5-15% for other categories. Easy returns build trust and encourage future purchases.