Common use cases

Size exchange (fashion). Customer asks for an exchange because the kurta is too small. You approve, they send it back, you mark it received and click Create Exchange. A replacement order is created for the right size.

Damaged on arrival. Customer reports a broken mug with Damaged in transit. Approve, refund without asking for it back if it isn't worth the shipping, and claim from your courier.

Change of mind. Within your window, approve, receive, inspect, then refund. If you charge a restocking fee, refund the agreed lower amount.

Store credit instead of refund. Offer store credit for faster resolution; the customer spends it on their next order.

COD returns. The customer paid cash. When you refund, the return is marked refunded and you send the money by UPI or bank transfer yourself.

Marketplace. Sellers set their own return window and reasons; the seller's commission is reversed on refunds and store credit.