Hi,
You could delete the product from the order.
Or you could add an additional product to it with a negative amount corresponding to the product that was returned.
Or you could create a new order with a product with a negative amount corresponding to the product that was returned.
It depends on how you want to manage it on your end.
On our end at hikashop.com we directly delete the product from the order.
If you have only one product in the order or if all the products were returned, then what I would recommend is to change the status of the order to refunded.
When you do that, the quantity of the products in the order will be returned to their stock (if you don't have an unlimited stock). Use points will also be removed from the user account if they were granted by the order.
Similarly, if you have a subscription with HikaSerial Subscriptions, the subscription will be revoked.
And if you don't have any of all that, they it won't do anything