How do returns work on shopify?

On Shopify, a return typically starts when a customer requests a return, the merchant approves it (or automates approvals), a return label is issued, and then the merchant inspects/restocks and issues a refund, exchange, or store credit. With Swap Returns (V2), you can also use Shopify’s Returns & Exchanges APIs so return activity stays connected to the original order for better visibility and cleaner reporting.