If you want to manage your Channel orders in M2E Pro, simply enable the Create Order in Magento option under eBay > Configuration > Accounts > Orders. Then, Magento orders will be created for ones imported from eBay.

In the Orders section, you can also select the condition for eBay orders to be automatically created in Magento. Depending on your selling strategy, a Magento order will be created when:

From time to time, customers can reconsider their purchase and ask for a refund. With the Cancel/Refund eBay orders option enabled under eBay > Configuration > Accounts > Orders, you can process your cancelation and refund requests from your Magento.

Cancelation

Unpaid eBay orders are displayed as Pending in the M2E Pro order grid (eBay > Sales). You can cancel a Pending eBay order by clicking Cancel in the corresponding Magento order. M2E Pro will submit the information about cancellation to eBay and sync the order status accordingly.

When paid orders are cancelled on eBay, M2E Pro can automatically create Magento Credit Memos for the corresponding orders. You can also set M2E Pro to approve order cancellations buyers request automatically. For that, you need to enable the relevant options under eBay Integration > Configurations > Orders > Refund & Cancellation:

Refund

Paid eBay orders are displayed as Shipped or Unshipped in the M2E Pro order grid (eBay > Sales). You can issue a full refund for such orders by creating a Credit Memo in the related Magento order. The order will be canceled, and the status update will be submitted to Channel.