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Order Status indicates the state of order during the handling process. For order status, you can create your custom order status in Magento 2.
An order status helps both customers and store owners to know about the order progress, for instance, where the order is, whether it has been packed, shipped, or paid, etc.
The best way to manage Magento orders is to create a custom order status. To learn to create a custom order status watch this video, if you need to learn more refer to this article.
How to Create Order Status in Magento 2
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