Every online store owner will have to deal with returns. And your return percentage could even be very high if you're selling clothes, shoes, or any other product that needs to 'fit'. Returns of 30 percent or more are quite common for a certain product types! This is something you have to take into account, not only from the financial side, but also from the operational point of view. How are you going to take care of returns? How do you keep track of them? The community version of Magento isn't very helpful in this area. The only thing that you can actually do is create a Credit Memo (also called a Credit Note) for your customer. The Credit Memo is a record of a refund, without meaning that the paid amount was actually returned to the customer. We will take a closer look at the return process later on, but first let's have a look of what can be done in Magento.