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I am trying to implement Product exchange functionality where in case customer order for wrong color/size, he can request for correct one to admin.

In this case, I would like to let admin change status of that product from Shipped to let's call Exchanged and then admin can put new order on behalf of customer for correct product.

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I am not able to find code to change order item status. I can find code to change Order status but that's not required in this case.

Any idea how to do this? or any easier way to implement this?

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Its better to have RMA (for Return Management) Plugin for managing such kinds of returns and exchange. You can get RMA extension for Magento 2 from here https://landofcoder.com/magento-2-rma-extension.html [For now its free ;) ]

The process would be:

  1. Order Placed by customer and fulfilled by merchandise.
  2. Customer can raise a request to return or exchange full or partial products from the order.
  3. Admin can authorise the request(Approve or Reject).
  4. On Receiving Product Inventor will get updated & now new order can be placed by the admin.

Hope it finds helpful.

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