Setting up returns in Shopify is straightforward. Start by going to your admin dashboard and accessing "Legal" under "Settings." From there, create a clear return policy that outlines the return timeframes and refund methods, ensuring it aligns with your brand. Save the policy so customers can access it during checkout. For an even more advanced returns system, consider using headless commerce. This approach allows you to offer customers a self-service portal where they can initiate returns, track the process, and choose between refunds, exchanges, or store credit.