diff --git a/.architecture-rules/api.yaml b/.architecture-rules/api.yaml
index a141988d..19d29f59 100644
--- a/.architecture-rules/api.yaml
+++ b/.architecture-rules/api.yaml
@@ -204,3 +204,53 @@ api_endpoint_rules:
       file_pattern: "app/api/v1/shop/**/*.py"
       discouraged_patterns:
         - "db.query(.*).all()"
+
+  - id: "API-007"
+    name: "API endpoints must NOT import database models directly"
+    severity: "error"
+    description: |
+      API endpoints must follow the layered architecture: Routes → Services → Models.
+      Routes should NEVER import database models directly.
+
+      WHY THIS MATTERS:
+      - Layered architecture: Each layer has clear responsibilities
+      - Testability: Routes can be tested without database
+      - Flexibility: Database schema changes don't affect route signatures
+      - Type safety: Schemas define the API contract, not database structure
+
+      For dependency injection (e.g., current user/customer), use schemas instead
+      of database models as return types.
+
+      WRONG:
+        from models.database.customer import Customer
+        from models.database.order import Order
+        from app.modules.customers.models.customer import Customer
+
+        @router.get("/orders")
+        def get_orders(customer: Customer = Depends(get_current_customer)):
+            ...
+
+      RIGHT:
+        from app.modules.customers.schemas import CustomerContext
+        from app.modules.orders.services import order_service
+
+        @router.get("/orders")
+        def get_orders(customer: CustomerContext = Depends(get_current_customer)):
+            return order_service.get_orders(db, customer.id, customer.vendor_id)
+
+      ALLOWED IMPORTS IN API ROUTES:
+      - Schemas: from models.schema.* or from app.modules.*.schemas
+      - Services: from app.services.* or from app.modules.*.services
+      - Dependencies: from app.api.deps
+      - Database session: from app.core.database import get_db
+
+      NOT ALLOWED:
+      - from models.database.*
+      - from app.modules.*.models.*
+    pattern:
+      file_pattern: "app/api/**/*.py"
+      anti_patterns:
+        - "from models\\.database\\."
+        - "from app\\.modules\\.[a-z_]+\\.models\\."
+      exclude_files:
+        - "app/api/deps.py"  # Dependencies may need model access for queries
diff --git a/alembic/env.py b/alembic/env.py
index a9dbe3ed..3f40b9b3 100644
--- a/alembic/env.py
+++ b/alembic/env.py
@@ -145,7 +145,7 @@ except ImportError as e:
 # CUSTOMER MODELS
 # ----------------------------------------------------------------------------
 try:
-    from models.database.customer import Customer, CustomerAddress
+    from app.modules.customers.models.customer import Customer, CustomerAddress
 
     print("  ✓ Customer models imported (2 models)")
     print("    - Customer")
diff --git a/app/api/deps.py b/app/api/deps.py
index 84f0577a..a06e51b6 100644
--- a/app/api/deps.py
+++ b/app/api/deps.py
@@ -740,7 +740,7 @@ def _validate_customer_token(token: str, request: Request, db: Session):
 
     from jose import JWTError, jwt
 
-    from models.database.customer import Customer
+    from app.modules.customers.models.customer import Customer
 
     # Decode and validate customer JWT token
     try:
diff --git a/app/modules/analytics/services/stats_service.py b/app/modules/analytics/services/stats_service.py
index 20287e43..1831ba7a 100644
--- a/app/modules/analytics/services/stats_service.py
+++ b/app/modules/analytics/services/stats_service.py
@@ -19,7 +19,7 @@ from sqlalchemy import func
 from sqlalchemy.orm import Session
 
 from app.exceptions import AdminOperationException, VendorNotFoundException
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 from models.database.inventory import Inventory
 from models.database.marketplace_import_job import MarketplaceImportJob
 from models.database.marketplace_product import MarketplaceProduct
diff --git a/app/modules/loyalty/services/card_service.py b/app/modules/loyalty/services/card_service.py
index d3301f13..f929a381 100644
--- a/app/modules/loyalty/services/card_service.py
+++ b/app/modules/loyalty/services/card_service.py
@@ -144,7 +144,7 @@ class CardService:
         Returns:
             (cards, total_count)
         """
-        from models.database.customer import Customer
+        from app.modules.customers.models.customer import Customer
 
         query = (
             db.query(LoyaltyCard)
diff --git a/app/modules/messaging/services/messaging_service.py b/app/modules/messaging/services/messaging_service.py
index 6e128468..cc61ad02 100644
--- a/app/modules/messaging/services/messaging_service.py
+++ b/app/modules/messaging/services/messaging_service.py
@@ -25,7 +25,7 @@ from app.modules.messaging.models.message import (
     MessageAttachment,
     ParticipantType,
 )
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 from models.database.user import User
 
 logger = logging.getLogger(__name__)
diff --git a/app/services/email_service.py b/app/services/email_service.py
index e291017c..0afaade7 100644
--- a/app/services/email_service.py
+++ b/app/services/email_service.py
@@ -1122,7 +1122,7 @@ class EmailService:
 
         # 2. Customer's preferred language
         if customer_id:
-            from models.database.customer import Customer
+            from app.modules.customers.models.customer import Customer
 
             customer = (
                 self.db.query(Customer).filter(Customer.id == customer_id).first()
diff --git a/docs/proposals/PLAN_storefront-module-restructure.md b/docs/proposals/PLAN_storefront-module-restructure.md
new file mode 100644
index 00000000..0a74a032
--- /dev/null
+++ b/docs/proposals/PLAN_storefront-module-restructure.md
@@ -0,0 +1,344 @@
+# Implementation Plan: Storefront Module Restructure
+
+## Overview
+
+Restructure the platform to properly separate **core platform concerns** (customer auth/identity) from **e-commerce concerns** (cart, checkout, catalog), and rename "shop" to "storefront" throughout.
+
+## Current Issues
+
+1. **API routes import database models directly** - violates layered architecture
+2. **No architecture rule enforces this** - validator doesn't catch it
+3. **"shop" naming is misleading** - not all platforms sell items
+4. **Customer auth is bundled with e-commerce** - should be core/platform concern
+
+---
+
+## Phase 1: Add Missing Architecture Rule
+
+### Task 1.1: Add API-007 rule to prevent direct model imports
+
+**File:** `.architecture-rules/api.yaml`
+
+Add new rule:
+```yaml
+- id: "API-007"
+  name: "API endpoints must NOT import database models directly"
+  severity: "error"
+  description: |
+    API endpoints should import from services, not directly from database models.
+    This enforces the layered architecture: Routes → Services → Models.
+
+    The only exception is for type hints in FastAPI dependency injection,
+    which should use schemas or services that return the appropriate types.
+
+    WRONG:
+      from models.database.customer import Customer
+      from models.database.order import Order
+
+    RIGHT:
+      from app.modules.customers.services import customer_service
+      from models.schema.customer import CustomerResponse
+  pattern:
+    file_pattern: "app/api/**/*.py"
+    anti_patterns:
+      - "from models\\.database\\."
+      - "from app\\.modules\\..*\\.models\\."
+```
+
+### Task 1.2: Update validator to check this rule
+
+**File:** `scripts/validate_architecture.py`
+
+Add validation for API-007.
+
+---
+
+## Phase 2: Rename "shop" to "storefront"
+
+### Task 2.1: Rename API directory
+```
+app/api/v1/shop/  →  app/api/v1/storefront/
+```
+
+### Task 2.2: Update all imports referencing shop
+- Update router registrations in `app/api/v1/__init__.py`
+- Update any references in middleware
+- Update documentation
+
+### Task 2.3: Rename routes/pages if applicable
+```
+app/routes/shop_pages.py  →  app/routes/storefront_pages.py
+```
+
+---
+
+## Phase 3: Create New E-commerce Modules
+
+### Task 3.1: Create `cart` module
+```
+app/modules/cart/
+├── __init__.py
+├── definition.py
+├── config.py
+├── exceptions.py
+├── models/
+│   ├── __init__.py
+│   └── cart.py              # Cart, CartItem models (if persistent)
+├── schemas/
+│   ├── __init__.py
+│   └── cart.py              # Move from models/schema/cart.py
+├── services/
+│   ├── __init__.py
+│   └── cart_service.py      # Move from app/services/cart_service.py
+└── routes/
+    └── api/
+        ├── __init__.py
+        └── storefront.py    # Cart endpoints for customers
+```
+
+### Task 3.2: Create `checkout` module
+```
+app/modules/checkout/
+├── __init__.py
+├── definition.py
+├── config.py
+├── exceptions.py
+├── schemas/
+│   ├── __init__.py
+│   └── checkout.py          # CheckoutRequest, CheckoutResponse
+├── services/
+│   ├── __init__.py
+│   └── checkout_service.py  # Orchestrates cart → order conversion
+└── routes/
+    └── api/
+        ├── __init__.py
+        └── storefront.py    # Place order endpoint
+```
+
+### Task 3.3: Create `catalog` module
+```
+app/modules/catalog/
+├── __init__.py
+├── definition.py
+├── config.py
+├── schemas/
+│   ├── __init__.py
+│   └── catalog.py           # ProductListResponse, ProductDetailResponse
+├── services/
+│   ├── __init__.py
+│   └── catalog_service.py   # Customer-facing product queries
+└── routes/
+    └── api/
+        ├── __init__.py
+        └── storefront.py    # Product browsing endpoints
+```
+
+---
+
+## Phase 4: Move Storefront Routes to Modules
+
+### Task 4.1: Move customer auth routes to `customers` module
+
+**From:** `app/api/v1/storefront/auth.py`
+**To:** `app/modules/customers/routes/api/storefront.py`
+
+Endpoints:
+- `POST /auth/register` - Customer registration
+- `POST /auth/login` - Customer login
+- `POST /auth/logout` - Customer logout
+- `POST /auth/password-reset/request` - Request password reset
+- `POST /auth/password-reset/confirm` - Confirm password reset
+
+### Task 4.2: Move customer profile routes to `customers` module
+
+**From:** `app/api/v1/storefront/profile.py`
+**To:** `app/modules/customers/routes/api/storefront.py` (append)
+
+Endpoints:
+- `GET /profile` - Get customer profile
+- `PUT /profile` - Update customer profile
+
+### Task 4.3: Move customer address routes to `customers` module
+
+**From:** `app/api/v1/storefront/addresses.py`
+**To:** `app/modules/customers/routes/api/storefront.py` (append)
+
+Endpoints:
+- `GET /addresses` - List customer addresses
+- `POST /addresses` - Create address
+- `PUT /addresses/{id}` - Update address
+- `DELETE /addresses/{id}` - Delete address
+
+### Task 4.4: Move cart routes to `cart` module
+
+**From:** `app/api/v1/storefront/carts.py`
+**To:** `app/modules/cart/routes/api/storefront.py`
+
+### Task 4.5: Move order placement to `checkout` module
+
+**From:** `app/api/v1/storefront/orders.py` (POST /orders only)
+**To:** `app/modules/checkout/routes/api/storefront.py`
+
+### Task 4.6: Move order viewing to `orders` module
+
+**From:** `app/api/v1/storefront/orders.py` (GET endpoints)
+**To:** `app/modules/orders/routes/api/storefront.py`
+
+### Task 4.7: Move product browsing to `catalog` module
+
+**From:** `app/api/v1/storefront/products.py`
+**To:** `app/modules/catalog/routes/api/storefront.py`
+
+### Task 4.8: Move messaging routes to `messaging` module
+
+**From:** `app/api/v1/storefront/messages.py`
+**To:** `app/modules/messaging/routes/api/storefront.py`
+
+---
+
+## Phase 5: Fix Direct Model Imports
+
+### Task 5.1: Update dependency injection pattern
+
+**Current pattern (violates layered architecture):**
+```python
+from models.database.customer import Customer
+
+@router.get("/orders")
+def get_orders(customer: Customer = Depends(get_current_customer_api)):
+    ...
+```
+
+**New pattern (proper layered architecture):**
+```python
+from app.modules.customers.schemas import CustomerContext
+
+@router.get("/orders")
+def get_orders(customer: CustomerContext = Depends(get_current_customer_api)):
+    ...
+```
+
+### Task 5.2: Create `CustomerContext` schema
+
+**File:** `app/modules/customers/schemas/context.py`
+```python
+class CustomerContext(BaseModel):
+    """Customer context for dependency injection in storefront routes."""
+    id: int
+    vendor_id: int
+    email: str
+    first_name: str | None
+    last_name: str | None
+
+    model_config = ConfigDict(from_attributes=True)
+```
+
+### Task 5.3: Update `get_current_customer_api` dependency
+
+**File:** `app/api/deps.py`
+
+Change return type from `Customer` (database model) to `CustomerContext` (schema).
+
+### Task 5.4: Update all storefront routes
+
+Replace all `Customer` type hints with `CustomerContext`.
+
+---
+
+## Phase 6: Delete Legacy Files
+
+### Task 6.1: Delete `models/database/customer.py`
+
+After all imports are updated to use `app.modules.customers.models.customer`.
+
+### Task 6.2: Delete `app/api/v1/storefront/` directory
+
+After all routes are moved to their respective modules.
+
+### Task 6.3: Delete `app/services/cart_service.py`
+
+After migrated to `app/modules/cart/services/cart_service.py`.
+
+---
+
+## Phase 7: Update Documentation
+
+### Task 7.1: Update API documentation
+- Rename all "shop" references to "storefront"
+- Update endpoint paths
+
+### Task 7.2: Update architecture documentation
+- Document the layered architecture rule
+- Document module structure
+
+---
+
+## Module Dependency Graph (Final State)
+
+```
+                    ┌─────────────┐
+                    │    core     │
+                    │  (tenancy)  │
+                    └──────┬──────┘
+                           │
+              ┌────────────┼────────────┐
+              │            │            │
+              ▼            ▼            ▼
+       ┌──────────┐  ┌──────────┐  ┌──────────┐
+       │customers │  │ payments │  │messaging │
+       │  (auth)  │  │          │  │          │
+       └────┬─────┘  └────┬─────┘  └──────────┘
+            │             │
+            │    ┌────────┴────────┐
+            │    │                 │
+            ▼    ▼                 ▼
+       ┌──────────┐          ┌──────────┐
+       │   cart   │          │  orders  │
+       │          │          │          │
+       └────┬─────┘          └────┬─────┘
+            │                     │
+            └──────────┬──────────┘
+                       │
+                       ▼
+                 ┌──────────┐
+                 │ checkout │
+                 │          │
+                 └──────────┘
+```
+
+---
+
+## Execution Order
+
+1. **Phase 1** - Add architecture rule (enables detection)
+2. **Phase 2** - Rename shop → storefront (terminology)
+3. **Phase 3** - Create new modules (cart, checkout, catalog)
+4. **Phase 4** - Move routes to modules
+5. **Phase 5** - Fix direct model imports
+6. **Phase 6** - Delete legacy files
+7. **Phase 7** - Update documentation
+
+---
+
+## Files Modified Summary
+
+### New Files
+- `.architecture-rules/api.yaml` (modified - add API-007)
+- `app/modules/cart/**` (new module)
+- `app/modules/checkout/**` (new module)
+- `app/modules/catalog/**` (new module)
+- `app/modules/customers/routes/api/storefront.py`
+- `app/modules/customers/schemas/context.py`
+- `app/modules/orders/routes/api/storefront.py`
+- `app/modules/messaging/routes/api/storefront.py`
+
+### Deleted Files
+- `app/api/v1/shop/` (entire directory)
+- `app/routes/shop_pages.py`
+- `models/database/customer.py`
+- `app/services/cart_service.py`
+
+### Modified Files
+- `app/api/deps.py` (CustomerContext return type)
+- `scripts/validate_architecture.py` (add API-007 check)
+- All files currently importing from legacy locations
diff --git a/scripts/seed_demo.py b/scripts/seed_demo.py
index d44e8c7f..8614968b 100644
--- a/scripts/seed_demo.py
+++ b/scripts/seed_demo.py
@@ -54,7 +54,7 @@ from middleware.auth import AuthManager
 from app.modules.cms.models import ContentPage
 from models.database.admin import PlatformAlert
 from models.database.company import Company
-from models.database.customer import Customer, CustomerAddress
+from app.modules.customers.models.customer import Customer, CustomerAddress
 from models.database.marketplace_import_job import MarketplaceImportJob
 from models.database.marketplace_product import MarketplaceProduct
 from models.database.marketplace_product_translation import (
diff --git a/scripts/validate_architecture.py b/scripts/validate_architecture.py
index a4b5a808..153763dc 100755
--- a/scripts/validate_architecture.py
+++ b/scripts/validate_architecture.py
@@ -1771,6 +1771,9 @@ class ArchitectureValidator:
             # API-005: Check vendor_id scoping for vendor/shop endpoints
             self._check_vendor_scoping(file_path, content, lines)
 
+            # API-007: Check for direct model imports
+            self._check_no_model_imports(file_path, content, lines)
+
     def _check_pydantic_usage(self, file_path: Path, content: str, lines: list[str]):
         """API-001: Ensure endpoints use Pydantic models"""
         rule = self._get_rule("API-001")
@@ -2061,6 +2064,59 @@ class ArchitectureValidator:
                     )
                     return  # Only report once per file
 
+    def _check_no_model_imports(
+        self, file_path: Path, content: str, lines: list[str]
+    ):
+        """API-007: Check that API endpoints do NOT import database models directly.
+
+        Routes should follow layered architecture: Routes → Services → Models.
+        Database models should only be imported in services, not in API routes.
+
+        Allowed: schemas, services, deps, database session
+        Not allowed: models.database.*, app.modules.*.models.*
+        """
+        rule = self._get_rule("API-007")
+        if not rule:
+            return
+
+        # Skip deps.py - it may need model access for queries
+        file_path_str = str(file_path)
+        if file_path_str.endswith("deps.py"):
+            return
+
+        # Check for noqa
+        if "noqa: api-007" in content.lower():
+            return
+
+        # Patterns that indicate direct model imports
+        model_import_patterns = [
+            (r"from models\.database\.", "Importing from legacy models.database location"),
+            (r"from app\.modules\.[a-z_]+\.models\.", "Importing from module models"),
+        ]
+
+        for i, line in enumerate(lines, 1):
+            # Skip comments
+            stripped = line.strip()
+            if stripped.startswith("#"):
+                continue
+
+            # Check for noqa on this specific line
+            if "noqa: api-007" in line.lower():
+                continue
+
+            for pattern, message in model_import_patterns:
+                if re.search(pattern, line):
+                    self._add_violation(
+                        rule_id="API-007",
+                        rule_name="API endpoints must NOT import database models directly",
+                        severity=Severity.ERROR,
+                        file_path=file_path,
+                        line_number=i,
+                        message=message,
+                        context=line.strip()[:80],
+                        suggestion="Import from services or schemas instead. Use CustomerContext schema for dependency injection.",
+                    )
+
     def _validate_service_layer(self, target_path: Path):
         """Validate service layer rules (SVC-001 to SVC-007)"""
         print("🔧 Validating service layer...")
diff --git a/tests/fixtures/customer_fixtures.py b/tests/fixtures/customer_fixtures.py
index cfa17f51..11515e31 100644
--- a/tests/fixtures/customer_fixtures.py
+++ b/tests/fixtures/customer_fixtures.py
@@ -8,7 +8,7 @@ See tests/conftest.py for details on fixture best practices.
 
 import pytest
 
-from models.database.customer import Customer, CustomerAddress
+from app.modules.customers.models.customer import Customer, CustomerAddress
 from models.database.order import Order
 
 
diff --git a/tests/integration/api/v1/shop/test_addresses.py b/tests/integration/api/v1/shop/test_addresses.py
index e406436f..7e2525d2 100644
--- a/tests/integration/api/v1/shop/test_addresses.py
+++ b/tests/integration/api/v1/shop/test_addresses.py
@@ -11,7 +11,7 @@ from unittest.mock import patch
 import pytest
 from jose import jwt
 
-from models.database.customer import Customer, CustomerAddress
+from app.modules.customers.models.customer import Customer, CustomerAddress
 
 
 @pytest.fixture
diff --git a/tests/integration/api/v1/shop/test_orders.py b/tests/integration/api/v1/shop/test_orders.py
index 3b680817..550fedeb 100644
--- a/tests/integration/api/v1/shop/test_orders.py
+++ b/tests/integration/api/v1/shop/test_orders.py
@@ -12,7 +12,7 @@ from unittest.mock import patch, MagicMock
 import pytest
 from jose import jwt
 
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 from models.database.invoice import Invoice, InvoiceStatus, VendorInvoiceSettings
 from models.database.order import Order, OrderItem
 
diff --git a/tests/integration/api/v1/shop/test_password_reset.py b/tests/integration/api/v1/shop/test_password_reset.py
index a2640b83..6bbbea3f 100644
--- a/tests/integration/api/v1/shop/test_password_reset.py
+++ b/tests/integration/api/v1/shop/test_password_reset.py
@@ -9,7 +9,7 @@ from unittest.mock import MagicMock, patch
 
 import pytest
 
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 from models.database.password_reset_token import PasswordResetToken
 
 
diff --git a/tests/integration/api/v1/vendor/test_invoices.py b/tests/integration/api/v1/vendor/test_invoices.py
index 06323045..17e6511a 100644
--- a/tests/integration/api/v1/vendor/test_invoices.py
+++ b/tests/integration/api/v1/vendor/test_invoices.py
@@ -9,7 +9,7 @@ from decimal import Decimal
 
 import pytest
 
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 from models.database.invoice import Invoice, InvoiceStatus, VendorInvoiceSettings
 from models.database.order import Order
 
diff --git a/tests/unit/models/database/test_customer.py b/tests/unit/models/database/test_customer.py
index 05067f76..338f7145 100644
--- a/tests/unit/models/database/test_customer.py
+++ b/tests/unit/models/database/test_customer.py
@@ -3,7 +3,7 @@
 
 import pytest
 
-from models.database.customer import Customer, CustomerAddress
+from app.modules.customers.models.customer import Customer, CustomerAddress
 
 
 @pytest.mark.unit
diff --git a/tests/unit/services/test_admin_customer_service.py b/tests/unit/services/test_admin_customer_service.py
index 0dd4ec76..cf9f113a 100644
--- a/tests/unit/services/test_admin_customer_service.py
+++ b/tests/unit/services/test_admin_customer_service.py
@@ -9,7 +9,7 @@ import pytest
 
 from app.exceptions.customer import CustomerNotFoundException
 from app.services.admin_customer_service import AdminCustomerService
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 
 
 @pytest.fixture
diff --git a/tests/unit/services/test_customer_address_service.py b/tests/unit/services/test_customer_address_service.py
index 935ea1fd..7555ce6b 100644
--- a/tests/unit/services/test_customer_address_service.py
+++ b/tests/unit/services/test_customer_address_service.py
@@ -7,7 +7,7 @@ import pytest
 
 from app.exceptions import AddressLimitExceededException, AddressNotFoundException
 from app.services.customer_address_service import CustomerAddressService
-from models.database.customer import CustomerAddress
+from app.modules.customers.models.customer import CustomerAddress
 from models.schema.customer import CustomerAddressCreate, CustomerAddressUpdate
 
 
diff --git a/tests/unit/services/test_order_service.py b/tests/unit/services/test_order_service.py
index 781287dc..eb660b77 100644
--- a/tests/unit/services/test_order_service.py
+++ b/tests/unit/services/test_order_service.py
@@ -27,7 +27,7 @@ from app.services.order_service import (
     OrderService,
     order_service,
 )
-from models.database.customer import Customer
+from app.modules.customers.models.customer import Customer
 from models.database.order import Order, OrderItem