What each order status means

Paid, sent, refunded and the rest, in plain words.

Every order has two labels: one for the money, one for the parcel.

Money

Awaiting payment
The shopper hasn't finished paying.
Paid
The money is yours.
Payment failed
The card or PayPal said no. The customer can be told by email.
Partly refunded
Some money went back.
Refunded
All the money went back.

Parcel

Awaiting fulfilment
Paid and waiting to be sent.
Sent
On its way. The customer has been emailed.
Cancelled
It won't be sent.

The progress line

Each order page shows Placed → Paid → Sent → Delivered. Delivered ticks itself when your warehouse reports it.