diff --git a/integration-tests/api/__tests__/admin/__snapshots__/return-reason.js.snap b/integration-tests/api/__tests__/admin/__snapshots__/return-reason.js.snap
new file mode 100644
index 0000000000..79d0282927
--- /dev/null
+++ b/integration-tests/api/__tests__/admin/__snapshots__/return-reason.js.snap
@@ -0,0 +1,16 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`/admin/return-reasons POST /admin/return-reasons creates a return_reason 1`] = `
+Object {
+  "created_at": Any<String>,
+  "deleted_at": null,
+  "description": "Use this if the size was too big",
+  "id": Any<String>,
+  "label": "Too Big",
+  "parent_return_reason": null,
+  "parent_return_reason_id": null,
+  "return_reason_children": Array [],
+  "updated_at": Any<String>,
+  "value": "too_big",
+}
+`;
diff --git a/integration-tests/api/__tests__/admin/return-reason.js b/integration-tests/api/__tests__/admin/return-reason.js
index 6255c3bfac..94e77e0745 100644
--- a/integration-tests/api/__tests__/admin/return-reason.js
+++ b/integration-tests/api/__tests__/admin/return-reason.js
@@ -1,53 +1,55 @@
-const path = require("path");
+const { match } = require("assert")
+const path = require("path")
+const { RepositoryNotTreeError } = require("typeorm")
 
-const setupServer = require("../../../helpers/setup-server");
-const { useApi } = require("../../../helpers/use-api");
-const { initDb, useDb } = require("../../../helpers/use-db");
+const setupServer = require("../../../helpers/setup-server")
+const { useApi } = require("../../../helpers/use-api")
+const { initDb, useDb } = require("../../../helpers/use-db")
 
-const adminSeeder = require("../../helpers/admin-seeder");
+const adminSeeder = require("../../helpers/admin-seeder")
 
-jest.setTimeout(30000);
+jest.setTimeout(30000)
 
 describe("/admin/return-reasons", () => {
-  let medusaProcess;
-  let dbConnection;
+  let medusaProcess
+  let dbConnection
 
   beforeAll(async () => {
-    const cwd = path.resolve(path.join(__dirname, "..", ".."));
-    dbConnection = await initDb({ cwd });
-    medusaProcess = await setupServer({ cwd });
-  });
+    const cwd = path.resolve(path.join(__dirname, "..", ".."))
+    dbConnection = await initDb({ cwd })
+    medusaProcess = await setupServer({ cwd })
+  })
 
   afterAll(async () => {
-    const db = useDb();
-    await db.shutdown();
+    const db = useDb()
+    await db.shutdown()
 
-    medusaProcess.kill();
-  });
+    medusaProcess.kill()
+  })
 
   describe("POST /admin/return-reasons", () => {
     beforeEach(async () => {
       try {
-        await adminSeeder(dbConnection);
+        await adminSeeder(dbConnection)
       } catch (err) {
-        console.log(err);
-        throw err;
+        console.log(err)
+        throw err
       }
-    });
+    })
 
     afterEach(async () => {
-      const db = useDb();
-      await db.teardown();
-    });
+      const db = useDb()
+      await db.teardown()
+    })
 
     it("creates a return_reason", async () => {
-      const api = useApi();
+      const api = useApi()
 
       const payload = {
         label: "Too Big",
         description: "Use this if the size was too big",
         value: "too_big",
-      };
+      }
 
       const response = await api
         .post("/admin/return-reasons", payload, {
@@ -56,10 +58,172 @@ describe("/admin/return-reasons", () => {
           },
         })
         .catch((err) => {
-          console.log(err);
-        });
+          console.log(err)
+        })
 
-      expect(response.status).toEqual(200);
+      expect(response.status).toEqual(200)
+
+      expect(response.data.return_reason).toMatchSnapshot({
+        id: expect.any(String),
+        created_at: expect.any(String),
+        updated_at: expect.any(String),
+        parent_return_reason: null,
+        parent_return_reason_id: null,
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+      })
+    })
+
+    it("creates a nested return reason", async () => {
+      const api = useApi()
+
+      const payload = {
+        label: "Wrong size",
+        description: "Use this if the size was too big",
+        value: "wrong_size",
+      }
+
+      const response = await api
+        .post("/admin/return-reasons", payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response.status).toEqual(200)
+
+      expect(response.data.return_reason).toEqual(
+        expect.objectContaining({
+          label: "Wrong size",
+          description: "Use this if the size was too big",
+          value: "wrong_size",
+        })
+      )
+
+      const nested_payload = {
+        parent_return_reason_id: response.data.return_reason.id,
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+      }
+
+      const nested_response = await api
+        .post("/admin/return-reasons", nested_payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(nested_response.status).toEqual(200)
+
+      expect(nested_response.data.return_reason).toEqual(
+        expect.objectContaining({
+          parent_return_reason_id: response.data.return_reason.id,
+
+          label: "Too Big",
+          description: "Use this if the size was too big",
+          value: "too_big",
+        })
+      )
+    })
+
+    it("fails to create a doubly nested return reason", async () => {
+      expect.assertions(5)
+
+      const api = useApi()
+
+      const payload = {
+        label: "Wrong size",
+        description: "Use this if the size was too big",
+        value: "wrong_size",
+      }
+
+      const response = await api
+        .post("/admin/return-reasons", payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response.status).toEqual(200)
+
+      expect(response.data.return_reason).toEqual(
+        expect.objectContaining({
+          label: "Wrong size",
+          description: "Use this if the size was too big",
+          value: "wrong_size",
+        })
+      )
+
+      const nested_payload = {
+        parent_return_reason_id: response.data.return_reason.id,
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+      }
+
+      const nested_response = await api
+        .post("/admin/return-reasons", nested_payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      const dbl_nested_payload = {
+        parent_return_reason_id: nested_response.data.return_reason.id,
+        label: "Too large size",
+        description: "Use this if the size was too big",
+        value: "large_size",
+      }
+
+      const dbl_nested_response = await api
+        .post("/admin/return-reasons", dbl_nested_payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          expect(err.response.status).toEqual(400)
+          expect(err.response.data.type).toEqual("invalid_data")
+          expect(err.response.data.message).toEqual(
+            "Doubly nested return reasons is not supported"
+          )
+        })
+    })
+
+    it("deletes a return_reason", async () => {
+      const api = useApi()
+
+      const payload = {
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+      }
+
+      const response = await api
+        .post("/admin/return-reasons", payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response.status).toEqual(200)
 
       expect(response.data.return_reason).toEqual(
         expect.objectContaining({
@@ -67,17 +231,37 @@ describe("/admin/return-reasons", () => {
           description: "Use this if the size was too big",
           value: "too_big",
         })
-      );
-    });
+      )
+
+      const deleteResponse = await api
+        .delete(`/admin/return-reasons/${response.data.return_reason.id}`, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response.status).toEqual(200)
+
+      expect(deleteResponse.data).toEqual(
+        expect.objectContaining({
+          id: response.data.return_reason.id,
+          object: "return_reason",
+          deleted: true,
+        })
+      )
+    })
 
     it("update a return reason", async () => {
-      const api = useApi();
+      const api = useApi()
 
       const payload = {
         label: "Too Big Typo",
         description: "Use this if the size was too big",
         value: "too_big",
-      };
+      }
 
       const response = await api
         .post("/admin/return-reasons", payload, {
@@ -86,10 +270,10 @@ describe("/admin/return-reasons", () => {
           },
         })
         .catch((err) => {
-          console.log(err);
-        });
+          console.log(err)
+        })
 
-      expect(response.status).toEqual(200);
+      expect(response.status).toEqual(200)
 
       expect(response.data.return_reason).toEqual(
         expect.objectContaining({
@@ -97,7 +281,7 @@ describe("/admin/return-reasons", () => {
           description: "Use this if the size was too big",
           value: "too_big",
         })
-      );
+      )
 
       const newResponse = await api
         .post(
@@ -113,8 +297,8 @@ describe("/admin/return-reasons", () => {
           }
         )
         .catch((err) => {
-          console.log(err);
-        });
+          console.log(err)
+        })
 
       expect(newResponse.data.return_reason).toEqual(
         expect.objectContaining({
@@ -122,17 +306,81 @@ describe("/admin/return-reasons", () => {
           description: "new desc",
           value: "too_big",
         })
-      );
-    });
+      )
+    })
+
+    it("lists nested return reasons", async () => {
+      const api = useApi()
+
+      const payload = {
+        label: "Wrong size",
+        description: "Use this if the size was too big",
+        value: "wrong_size",
+      }
+
+      const response = await api
+        .post("/admin/return-reasons", payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      const nested_payload = {
+        parent_return_reason_id: response.data.return_reason.id,
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+      }
+
+      const resp = await api
+        .post("/admin/return-reasons", nested_payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      const nested_response = await api
+        .get("/admin/return-reasons", {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(nested_response.status).toEqual(200)
+
+      expect(nested_response.data.return_reasons).toEqual([
+        expect.objectContaining({
+          label: "Wrong size",
+          description: "Use this if the size was too big",
+          value: "wrong_size",
+          return_reason_children: expect.arrayContaining([
+            expect.objectContaining({
+              label: "Too Big",
+              description: "Use this if the size was too big",
+              value: "too_big",
+            }),
+          ]),
+        }),
+      ])
+    })
 
     it("list return reasons", async () => {
-      const api = useApi();
+      const api = useApi()
 
       const payload = {
         label: "Too Big Typo",
         description: "Use this if the size was too big",
         value: "too_big",
-      };
+      }
 
       await api
         .post("/admin/return-reasons", payload, {
@@ -141,8 +389,8 @@ describe("/admin/return-reasons", () => {
           },
         })
         .catch((err) => {
-          console.log(err);
-        });
+          console.log(err)
+        })
 
       const response = await api
         .get("/admin/return-reasons", {
@@ -151,15 +399,191 @@ describe("/admin/return-reasons", () => {
           },
         })
         .catch((err) => {
-          console.log(err);
-        });
+          console.log(err)
+        })
 
-      expect(response.status).toEqual(200);
+      expect(response.status).toEqual(200)
       expect(response.data.return_reasons).toEqual([
         expect.objectContaining({
           value: "too_big",
         }),
-      ]);
-    });
-  });
-});
+      ])
+    })
+  })
+
+  describe("DELETE /admin/return-reasons", () => {
+    beforeEach(async () => {
+      try {
+        await adminSeeder(dbConnection)
+      } catch (err) {
+        console.log(err)
+        throw err
+      }
+    })
+
+    afterEach(async () => {
+      const db = useDb()
+      await db.teardown()
+    })
+
+    it("deletes single return reason", async () => {
+      expect.assertions(6)
+
+      const api = useApi()
+
+      const payload = {
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+      }
+
+      const response = await api
+        .post("/admin/return-reasons", payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response.status).toEqual(200)
+
+      expect(response.data.return_reason).toEqual(
+        expect.objectContaining({
+          label: "Too Big",
+          description: "Use this if the size was too big",
+          value: "too_big",
+        })
+      )
+
+      const deleteResult = await api.delete(
+        `/admin/return-reasons/${response.data.return_reason.id}`,
+        {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        }
+      )
+
+      expect(deleteResult.status).toEqual(200)
+
+      expect(deleteResult.data).toEqual({
+        id: response.data.return_reason.id,
+        object: "return_reason",
+        deleted: true,
+      })
+
+      const getResult = await api
+        .get(`/admin/return-reasons/${response.data.return_reason.id}`, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          expect(err.response.status).toEqual(404)
+          expect(err.response.data.type).toEqual("not_found")
+        })
+    })
+
+    it("deletes cascade through nested return reasons", async () => {
+      expect.assertions(10)
+
+      const api = useApi()
+
+      const payload = {
+        label: "Wrong Size",
+        description: "Use this if the size was wrong",
+        value: "wrong_size",
+      }
+
+      const response = await api
+        .post("/admin/return-reasons", payload, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response.status).toEqual(200)
+
+      expect(response.data.return_reason).toEqual(
+        expect.objectContaining({
+          label: "Wrong Size",
+          description: "Use this if the size was wrong",
+          value: "wrong_size",
+        })
+      )
+
+      const payload_child = {
+        label: "Too Big",
+        description: "Use this if the size was too big",
+        value: "too_big",
+        parent_return_reason_id: response.data.return_reason.id,
+      }
+
+      const response_child = await api
+        .post("/admin/return-reasons", payload_child, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err)
+        })
+
+      expect(response_child.status).toEqual(200)
+
+      expect(response_child.data.return_reason).toEqual(
+        expect.objectContaining({
+          label: "Too Big",
+          description: "Use this if the size was too big",
+          value: "too_big",
+          parent_return_reason_id: response.data.return_reason.id,
+        })
+      )
+
+      const deleteResult = await api
+        .delete(`/admin/return-reasons/${response.data.return_reason.id}`, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          console.log(err.response.data)
+        })
+
+      expect(deleteResult.status).toEqual(200)
+
+      expect(deleteResult.data).toEqual({
+        id: response.data.return_reason.id,
+        object: "return_reason",
+        deleted: true,
+      })
+
+      await api
+        .get(`/admin/return-reasons/${response.data.return_reason.id}`, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          expect(err.response.status).toEqual(404)
+          expect(err.response.data.type).toEqual("not_found")
+        })
+
+      await api
+        .get(`/admin/return-reasons/${response_child.data.return_reason.id}`, {
+          headers: {
+            Authorization: "Bearer test_token",
+          },
+        })
+        .catch((err) => {
+          expect(err.response.status).toEqual(404)
+          expect(err.response.data.type).toEqual("not_found")
+        })
+    })
+  })
+})
diff --git a/integration-tests/api/__tests__/store/return-reason.js b/integration-tests/api/__tests__/store/return-reason.js
index 4698fb86d6..8aa0c4c9d4 100644
--- a/integration-tests/api/__tests__/store/return-reason.js
+++ b/integration-tests/api/__tests__/store/return-reason.js
@@ -26,16 +26,35 @@ describe("/store/return-reasons", () => {
 
   describe("GET /store/return-reasons", () => {
     let rrId;
+    let rrId_1;
+    let rrId_2;
 
     beforeEach(async () => {
       try {
         const created = dbConnection.manager.create(ReturnReason, {
-          value: "too_big",
-          label: "Too Big",
+          value: "wrong_size",
+          label: "Wrong size",
         });
 
         const result = await dbConnection.manager.save(created);
         rrId = result.id;
+
+        const created_child = dbConnection.manager.create(ReturnReason, {
+          value: "too_big",
+          label: "Too Big",
+          parent_return_reason_id: rrId
+        });
+
+        const result_child = await dbConnection.manager.save(created_child);
+        rrId_1 = result_child.id;
+
+        const created_2 = dbConnection.manager.create(ReturnReason, {
+          value: "too_big_1",
+          label: "Too Big 1",
+        });
+
+        const result_2 = await dbConnection.manager.save(created_2);
+        rrId_2 = result_2.id;
       } catch (err) {
         console.log(err);
         throw err;
@@ -59,7 +78,15 @@ describe("/store/return-reasons", () => {
       expect(response.data.return_reasons).toEqual([
         expect.objectContaining({
           id: rrId,
-          value: "too_big",
+          value: "wrong_size",
+          return_reason_children:[expect.objectContaining({
+            id: rrId_1,
+            value: "too_big",
+          }),]
+        }),
+        expect.objectContaining({
+          id: rrId_2,
+          value: "too_big_1",
         }),
       ]);
     });
diff --git a/integration-tests/api/__tests__/store/returns.js b/integration-tests/api/__tests__/store/returns.js
index f916572a52..3d5151dedb 100644
--- a/integration-tests/api/__tests__/store/returns.js
+++ b/integration-tests/api/__tests__/store/returns.js
@@ -8,6 +8,7 @@ const {
   Product,
   ProductVariant,
   ShippingOption,
+  FulfillmentProvider,
   LineItem,
   Discount,
   DiscountRule,
@@ -37,6 +38,8 @@ describe("/store/carts", () => {
 
   describe("POST /store/returns", () => {
     let rrId;
+    let rrId_child;
+    let rrResult;
 
     beforeEach(async () => {
       const manager = dbConnection.manager;
@@ -44,13 +47,17 @@ describe("/store/carts", () => {
         `ALTER SEQUENCE order_display_id_seq RESTART WITH 111`
       );
 
+      const defaultProfile = await manager.findOne(ShippingProfile, {
+        type: "default",
+      });
+  
       await manager.insert(Region, {
         id: "region",
         name: "Test Region",
         currency_code: "usd",
         tax_rate: 0,
       });
-
+  
       await manager.insert(Customer, {
         id: "cus_1234",
         email: "test@email.com",
@@ -98,10 +105,6 @@ describe("/store/carts", () => {
 
       await manager.save(ord);
 
-      const defaultProfile = await manager.findOne(ShippingProfile, {
-        type: "default",
-      });
-
       await manager.insert(Product, {
         id: "test-product",
         title: "test product",
@@ -147,12 +150,23 @@ describe("/store/carts", () => {
       });
 
       const created = dbConnection.manager.create(ReturnReason, {
-        value: "too_big",
-        label: "Too Big",
+        value: "wrong_size",
+        label: "Wrong Size",
       });
       const result = await dbConnection.manager.save(created);
 
+      rrResult = result
       rrId = result.id;
+
+      const created_1 = dbConnection.manager.create(ReturnReason, {
+        value: "too_big",
+        label: "Too Big",
+        parent_return_reason_id: rrId,
+      });
+
+      const result_1 = await dbConnection.manager.save(created_1);
+
+      rrId_child = result_1.id;
     });
 
     afterEach(async () => {
@@ -181,6 +195,59 @@ describe("/store/carts", () => {
       expect(response.data.return.refund_amount).toEqual(8000);
     });
 
+    it("failes to create a return with a reason category", async () => {
+      const api = useApi();
+      
+      const response = await api
+        .post("/store/returns", {
+          order_id: "order_test",
+          items: [
+            {
+              reason_id: rrId,
+              note: "TOO small",
+              item_id: "test-item",
+              quantity: 1,
+            },
+          ],
+        })
+        .catch((err) => {
+          return err.response;
+        });
+
+      expect(response.status).toEqual(400);
+      expect(response.data.message).toEqual('Cannot apply return reason category')
+
+    });
+
+    it("creates a return with reasons", async () => {
+      const api = useApi();
+      
+      const response = await api
+        .post("/store/returns", {
+          order_id: "order_test",
+          items: [
+            {
+              reason_id: rrId_child,
+              note: "TOO small",
+              item_id: "test-item",
+              quantity: 1,
+            },
+          ],
+        })
+        .catch((err) => {
+          console.log(err.response)
+          return err.response;
+        });
+      expect(response.status).toEqual(200);
+
+      expect(response.data.return.items).toEqual([
+        expect.objectContaining({
+          reason_id: rrId_child,
+          note: "TOO small",
+        }),
+      ]);
+    });
+
     it("creates a return with discount and non-discountable item", async () => {
       const api = useApi();
 
@@ -234,32 +301,5 @@ describe("/store/carts", () => {
       expect(response.data.return.refund_amount).toEqual(7000);
     });
 
-    it("creates a return with reasons", async () => {
-      const api = useApi();
-
-      const response = await api
-        .post("/store/returns", {
-          order_id: "order_test",
-          items: [
-            {
-              reason_id: rrId,
-              note: "TOO small",
-              item_id: "test-item",
-              quantity: 1,
-            },
-          ],
-        })
-        .catch((err) => {
-          return err.response;
-        });
-      expect(response.status).toEqual(200);
-
-      expect(response.data.return.items).toEqual([
-        expect.objectContaining({
-          reason_id: rrId,
-          note: "TOO small",
-        }),
-      ]);
-    });
   });
 });
diff --git a/packages/medusa/src/api/routes/admin/return-reasons/create-reason.js b/packages/medusa/src/api/routes/admin/return-reasons/create-reason.js
index 42b9eb8760..d089865088 100644
--- a/packages/medusa/src/api/routes/admin/return-reasons/create-reason.js
+++ b/packages/medusa/src/api/routes/admin/return-reasons/create-reason.js
@@ -39,6 +39,7 @@ export default async (req, res) => {
   const schema = Validator.object().keys({
     value: Validator.string().required(),
     label: Validator.string().required(),
+    parent_return_reason_id: Validator.string().optional(),
     description: Validator.string()
       .optional()
       .allow(""),
diff --git a/packages/medusa/src/api/routes/admin/return-reasons/delete-reason.js b/packages/medusa/src/api/routes/admin/return-reasons/delete-reason.js
new file mode 100644
index 0000000000..9688d69205
--- /dev/null
+++ b/packages/medusa/src/api/routes/admin/return-reasons/delete-reason.js
@@ -0,0 +1,41 @@
+/**
+ * @oas [delete] /return-reason/{id}
+ * operationId: "DeleteReturnReason"
+ * summary: "Delete a return reason"
+ * description: "Deletes a return reason."
+ * parameters:
+ *   - (path) id=* {string} The id of the return reason
+ * tags:
+ *   - Return Reason
+ * responses:
+ *   200:
+ *     description: OK
+ *     content:
+ *       application/json:
+ *         schema:
+ *           properties:
+ *             id:
+ *               type: string
+ *               description: The id of the deleted return reason
+ *             object:
+ *               type: string
+ *               description: The type of the object that was deleted.
+ *             deleted:
+ *               type: boolean
+ */
+export default async (req, res) => {
+  const { id } = req.params
+
+  try {
+    const returnReasonService = req.scope.resolve("returnReasonService")
+    await returnReasonService.delete(id)
+
+    res.json({
+      id: id,
+      object: "return_reason",
+      deleted: true,
+    })
+  } catch (err) {
+    throw err
+  }
+}
diff --git a/packages/medusa/src/api/routes/admin/return-reasons/index.js b/packages/medusa/src/api/routes/admin/return-reasons/index.js
index 7ad111137f..b535b488f5 100644
--- a/packages/medusa/src/api/routes/admin/return-reasons/index.js
+++ b/packages/medusa/src/api/routes/admin/return-reasons/index.js
@@ -26,6 +26,11 @@ export default app => {
    */
   route.post("/:id", middlewares.wrap(require("./update-reason").default))
 
+  /**
+   * Delete a reason
+   */
+  route.delete("/:id", middlewares.wrap(require("./delete-reason").default))
+
   return app
 }
 
@@ -33,10 +38,14 @@ export const defaultFields = [
   "id",
   "value",
   "label",
+  "parent_return_reason_id",
   "description",
   "created_at",
   "updated_at",
   "deleted_at",
 ]
 
-export const defaultRelations = []
+export const defaultRelations = [
+  "parent_return_reason",
+  "return_reason_children",
+]
diff --git a/packages/medusa/src/api/routes/admin/return-reasons/list-reasons.js b/packages/medusa/src/api/routes/admin/return-reasons/list-reasons.js
index 367a2fb651..2c1f8664ed 100644
--- a/packages/medusa/src/api/routes/admin/return-reasons/list-reasons.js
+++ b/packages/medusa/src/api/routes/admin/return-reasons/list-reasons.js
@@ -24,7 +24,7 @@ export default async (req, res) => {
   try {
     const returnReasonService = req.scope.resolve("returnReasonService")
 
-    const query = {}
+    const query = { parent_return_reason_id: null }
     const data = await returnReasonService.list(query, {
       select: defaultFields,
       relations: defaultRelations,
diff --git a/packages/medusa/src/api/routes/admin/return-reasons/update-reason.js b/packages/medusa/src/api/routes/admin/return-reasons/update-reason.js
index 82d933c406..398c661a9d 100644
--- a/packages/medusa/src/api/routes/admin/return-reasons/update-reason.js
+++ b/packages/medusa/src/api/routes/admin/return-reasons/update-reason.js
@@ -42,6 +42,7 @@ export default async (req, res) => {
 
   const schema = Validator.object().keys({
     label: Validator.string().optional(),
+    parent_return_reason_id: Validator.string().optional(),
     description: Validator.string()
       .optional()
       .allow(""),
diff --git a/packages/medusa/src/api/routes/store/return-reasons/index.js b/packages/medusa/src/api/routes/store/return-reasons/index.js
index 4590bb5c6a..071d27e8cc 100644
--- a/packages/medusa/src/api/routes/store/return-reasons/index.js
+++ b/packages/medusa/src/api/routes/store/return-reasons/index.js
@@ -23,10 +23,14 @@ export const defaultFields = [
   "id",
   "value",
   "label",
+  "parent_return_reason_id",
   "description",
   "created_at",
   "updated_at",
   "deleted_at",
 ]
 
-export const defaultRelations = []
+export const defaultRelations = [
+  "parent_return_reason",
+  "return_reason_children",
+]
diff --git a/packages/medusa/src/api/routes/store/return-reasons/list-reasons.js b/packages/medusa/src/api/routes/store/return-reasons/list-reasons.js
index 367a2fb651..563e5a893b 100644
--- a/packages/medusa/src/api/routes/store/return-reasons/list-reasons.js
+++ b/packages/medusa/src/api/routes/store/return-reasons/list-reasons.js
@@ -24,7 +24,7 @@ export default async (req, res) => {
   try {
     const returnReasonService = req.scope.resolve("returnReasonService")
 
-    const query = {}
+    const query = { parent_return_reason_id: null}
     const data = await returnReasonService.list(query, {
       select: defaultFields,
       relations: defaultRelations,
diff --git a/packages/medusa/src/migrations/1631800727788-nested_return_reasons.ts b/packages/medusa/src/migrations/1631800727788-nested_return_reasons.ts
new file mode 100644
index 0000000000..c50c957e09
--- /dev/null
+++ b/packages/medusa/src/migrations/1631800727788-nested_return_reasons.ts
@@ -0,0 +1,20 @@
+import {MigrationInterface, QueryRunner} from "typeorm";
+
+export class nestedReturnReasons1631800727788 implements MigrationInterface {
+
+    public async up(queryRunner: QueryRunner): Promise<void> {
+   await queryRunner.query(
+      `ALTER TABLE "return_reason" ADD "parent_return_reason_id" character varying`
+      
+      )
+      await queryRunner.query(`ALTER TABLE "return_reason" ADD CONSTRAINT "FK_2250c5d9e975987ab212f61a657" FOREIGN KEY ("parent_return_reason_id") REFERENCES "return_reason"("id") ON DELETE NO ACTION ON UPDATE NO ACTION`);
+  }
+
+  public async down(queryRunner: QueryRunner): Promise<void> {
+    await queryRunner.query(
+      `ALTER TABLE "return_reason" DROP COLUMN "parent_return_reason_id"`
+    )
+
+  }
+
+}
diff --git a/packages/medusa/src/models/return-reason.ts b/packages/medusa/src/models/return-reason.ts
index 6846e0da27..9cbfb47a52 100644
--- a/packages/medusa/src/models/return-reason.ts
+++ b/packages/medusa/src/models/return-reason.ts
@@ -7,6 +7,9 @@ import {
   CreateDateColumn,
   UpdateDateColumn,
   PrimaryColumn,
+  ManyToOne, 
+  OneToMany,
+  JoinColumn
 } from "typeorm"
 import { ulid } from "ulid"
 import { resolveDbType, DbAwareColumn } from "../utils/db-aware-column"
@@ -26,6 +29,21 @@ export class ReturnReason {
   @Column({ nullable: true })
   description: string
 
+  @Column({ nullable: true })
+  parent_return_reason_id: string
+
+  @ManyToOne(() => ReturnReason, {cascade: ['soft-remove']}
+  )
+  @JoinColumn({ name: "parent_return_reason_id" })
+  parent_return_reason: ReturnReason
+
+  @OneToMany(
+    () => ReturnReason,
+    return_reason => return_reason.parent_return_reason,
+    { cascade: ["insert", 'soft-remove'] }
+  )
+  return_reason_children: ReturnReason[]
+
   @CreateDateColumn({ type: resolveDbType("timestamptz") })
   created_at: Date
 
diff --git a/packages/medusa/src/services/return-reason.js b/packages/medusa/src/services/return-reason.js
index 34784c78e9..0a25556a79 100644
--- a/packages/medusa/src/services/return-reason.js
+++ b/packages/medusa/src/services/return-reason.js
@@ -1,6 +1,6 @@
-import _ from "lodash"
 import { Validator, MedusaError } from "medusa-core-utils"
 import { BaseService } from "medusa-interfaces"
+import { In } from "typeorm"
 
 class ReturnReasonService extends BaseService {
   constructor({ manager, returnReasonRepository }) {
@@ -32,6 +32,17 @@ class ReturnReasonService extends BaseService {
     return this.atomicPhase_(async manager => {
       const rrRepo = manager.getCustomRepository(this.retReasonRepo_)
 
+      if (data.parent_return_reason_id && data.parent_return_reason_id !== "") {
+        const parentReason = await this.retrieve(data.parent_return_reason_id)
+
+        if (parentReason.parent_return_reason_id) {
+          throw new MedusaError(
+            MedusaError.Types.INVALID_DATA,
+            "Doubly nested return reasons is not supported"
+          )
+        }
+      }
+
       const created = rrRepo.create(data)
 
       const result = await rrRepo.save(created)
@@ -44,14 +55,20 @@ class ReturnReasonService extends BaseService {
       const rrRepo = manager.getCustomRepository(this.retReasonRepo_)
       const reason = await this.retrieve(id)
 
-      if ("description" in data) {
+      const { description, label, parent_return_reason_id } = data
+
+      if (description) {
         reason.description = data.description
       }
 
-      if ("label" in data) {
+      if (label) {
         reason.label = data.label
       }
 
+      if (parent_return_reason_id) {
+        reason.parent_return_reason_id = parent_return_reason_id
+      }
+
       await rrRepo.save(reason)
 
       return reason
@@ -92,6 +109,25 @@ class ReturnReasonService extends BaseService {
 
     return item
   }
+
+  async delete(returnReasonId) {
+    return this.atomicPhase_(async manager => {
+      const rrRepo = manager.getCustomRepository(this.retReasonRepo_)
+
+      // We include the relation 'return_reason_children' to enable cascading deletes of return reasons if a parent is removed
+      const reason = await this.retrieve(returnReasonId, {
+        relations: ["return_reason_children"],
+      })
+
+      if (!reason) {
+        return Promise.resolve()
+      }
+
+      await rrRepo.softRemove(reason)
+
+      return Promise.resolve()
+    })
+  }
 }
 
 export default ReturnReasonService
diff --git a/packages/medusa/src/services/return.js b/packages/medusa/src/services/return.js
index 23bbca9e08..0092e0e5c7 100644
--- a/packages/medusa/src/services/return.js
+++ b/packages/medusa/src/services/return.js
@@ -374,6 +374,18 @@ class ReturnService extends BaseService {
         refund_amount: Math.floor(toRefund),
       }
 
+      const returnReasons = await this.returnReasonService_.list(
+        { id: [...returnLines.map(rl => rl.reason_id)] },
+        { relations: ["return_reason_children"] }
+      )
+
+      if (returnReasons.some(rr => rr.return_reason_children?.length > 0)) {
+        throw new MedusaError(
+          MedusaError.Types.INVALID_DATA,
+          "Cannot apply return reason category"
+        )
+      }
+
       const rItemRepo = manager.getCustomRepository(this.returnItemRepository_)
       returnObject.items = returnLines.map(i =>
         rItemRepo.create({