diff --git a/README.md b/README.md
index d61b4111..7e39e00a 100644
--- a/README.md
+++ b/README.md
@@ -123,7 +123,7 @@ import sys
 # Add your project directory to the Python path
 sys.path.append(os.path.dirname(os.path.dirname(__file__)))
 
-from models.database_models import Base
+from models.database import Base
 from config.settings import settings
 
 # Alembic Config object
diff --git a/alembic-env.py b/alembic-env.py
index 7d751343..524c71f2 100644
--- a/alembic-env.py
+++ b/alembic-env.py
@@ -10,7 +10,7 @@ from alembic import context
 sys.path.append(os.path.dirname(os.path.dirname(__file__)))
 
 from app.core.config import settings
-from models.database_models import Base
+from models.database import Base
 
 # Alembic Config object
 config = context.config
diff --git a/alembic/env.py b/alembic/env.py
index 7d751343..e9959486 100644
--- a/alembic/env.py
+++ b/alembic/env.py
@@ -10,7 +10,7 @@ from alembic import context
 sys.path.append(os.path.dirname(os.path.dirname(__file__)))
 
 from app.core.config import settings
-from models.database_models import Base
+from models.database.base import Base
 
 # Alembic Config object
 config = context.config
diff --git a/app/api/deps.py b/app/api/deps.py
index e8ba57ac..2fcc7ed9 100644
--- a/app/api/deps.py
+++ b/app/api/deps.py
@@ -14,7 +14,8 @@ from sqlalchemy.orm import Session
 from app.core.database import get_db
 from middleware.auth import AuthManager
 from middleware.rate_limiter import RateLimiter
-from models.database_models import Shop, User
+from models.database.user import User
+from models.database.shop import Shop
 
 # Set auto_error=False to prevent automatic 403 responses
 security = HTTPBearer(auto_error=False)
diff --git a/app/api/v1/admin.py b/app/api/v1/admin.py
index 3da3c782..a968eb0f 100644
--- a/app/api/v1/admin.py
+++ b/app/api/v1/admin.py
@@ -16,9 +16,10 @@ from sqlalchemy.orm import Session
 from app.api.deps import get_current_admin_user
 from app.core.database import get_db
 from app.services.admin_service import admin_service
-from models.api_models import (MarketplaceImportJobResponse, ShopListResponse,
-                               UserResponse)
-from models.database_models import User
+from models.api.marketplace import MarketplaceImportJobResponse
+from models.api.shop import ShopListResponse
+from models.api.auth import UserResponse
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/api/v1/auth.py b/app/api/v1/auth.py
index a9ed4271..96c60b3f 100644
--- a/app/api/v1/auth.py
+++ b/app/api/v1/auth.py
@@ -15,9 +15,9 @@ from sqlalchemy.orm import Session
 from app.api.deps import get_current_user
 from app.core.database import get_db
 from app.services.auth_service import auth_service
-from models.api_models import (LoginResponse, UserLogin, UserRegister,
+from models.api.auth import (LoginResponse, UserLogin, UserRegister,
                                UserResponse)
-from models.database_models import User
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/api/v1/marketplace.py b/app/api/v1/marketplace.py
index 7881b846..4560648a 100644
--- a/app/api/v1/marketplace.py
+++ b/app/api/v1/marketplace.py
@@ -18,9 +18,9 @@ from app.core.database import get_db
 from app.services.marketplace_service import marketplace_service
 from app.tasks.background_tasks import process_marketplace_import
 from middleware.decorators import rate_limit
-from models.api_models import (MarketplaceImportJobResponse,
+from models.api.marketplace import (MarketplaceImportJobResponse,
                                MarketplaceImportRequest)
-from models.database_models import User
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/api/v1/product.py b/app/api/v1/product.py
index 52979989..92f8bcfe 100644
--- a/app/api/v1/product.py
+++ b/app/api/v1/product.py
@@ -17,10 +17,10 @@ from sqlalchemy.orm import Session
 from app.api.deps import get_current_user
 from app.core.database import get_db
 from app.services.product_service import product_service
-from models.api_models import (ProductCreate, ProductDetailResponse,
+from models.api.product import (ProductCreate, ProductDetailResponse,
                                ProductListResponse, ProductResponse,
                                ProductUpdate)
-from models.database_models import User
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/api/v1/shop.py b/app/api/v1/shop.py
index e0b32fe2..5051fe76 100644
--- a/app/api/v1/shop.py
+++ b/app/api/v1/shop.py
@@ -15,9 +15,9 @@ from sqlalchemy.orm import Session
 from app.api.deps import get_current_user, get_user_shop
 from app.core.database import get_db
 from app.services.shop_service import shop_service
-from models.api_models import (ShopCreate, ShopListResponse, ShopProductCreate,
+from models.api.shop import (ShopCreate, ShopListResponse, ShopProductCreate,
                                ShopProductResponse, ShopResponse)
-from models.database_models import User
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/api/v1/stats.py b/app/api/v1/stats.py
index ddcb3f6d..5486c3fa 100644
--- a/app/api/v1/stats.py
+++ b/app/api/v1/stats.py
@@ -16,8 +16,8 @@ from sqlalchemy.orm import Session
 from app.api.deps import get_current_user
 from app.core.database import get_db
 from app.services.stats_service import stats_service
-from models.api_models import MarketplaceStatsResponse, StatsResponse
-from models.database_models import User
+from models.api.stats import MarketplaceStatsResponse, StatsResponse
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/api/v1/stock.py b/app/api/v1/stock.py
index bd5a4eb1..c41b62ac 100644
--- a/app/api/v1/stock.py
+++ b/app/api/v1/stock.py
@@ -16,9 +16,9 @@ from sqlalchemy.orm import Session
 from app.api.deps import get_current_user
 from app.core.database import get_db
 from app.services.stock_service import stock_service
-from models.api_models import (StockAdd, StockCreate, StockResponse,
+from models.api.stock import (StockAdd, StockCreate, StockResponse,
                                StockSummaryResponse, StockUpdate)
-from models.database_models import User
+from models.database.user import User
 
 router = APIRouter()
 logger = logging.getLogger(__name__)
diff --git a/app/core/lifespan.py b/app/core/lifespan.py
index 2233edd2..0962e666 100644
--- a/app/core/lifespan.py
+++ b/app/core/lifespan.py
@@ -14,7 +14,7 @@ from fastapi import FastAPI
 from sqlalchemy import text
 
 from middleware.auth import AuthManager
-from models.database_models import Base
+from models.database.base import Base
 
 from .database import SessionLocal, engine
 from .logging import setup_logging
diff --git a/app/services/admin_service.py b/app/services/admin_service.py
index 179e5245..8934631a 100644
--- a/app/services/admin_service.py
+++ b/app/services/admin_service.py
@@ -14,8 +14,10 @@ from typing import List, Optional, Tuple
 from fastapi import HTTPException
 from sqlalchemy.orm import Session
 
-from models.api_models import MarketplaceImportJobResponse
-from models.database_models import MarketplaceImportJob, Shop, User
+from models.api.marketplace import MarketplaceImportJobResponse
+from models.database.marketplace import MarketplaceImportJob
+from models.database.shop import Shop
+from models.database.user import User
 
 logger = logging.getLogger(__name__)
 
diff --git a/app/services/auth_service.py b/app/services/auth_service.py
index 4a264220..44f8b8fc 100644
--- a/app/services/auth_service.py
+++ b/app/services/auth_service.py
@@ -14,8 +14,8 @@ from fastapi import HTTPException
 from sqlalchemy.orm import Session
 
 from middleware.auth import AuthManager
-from models.api_models import UserLogin, UserRegister
-from models.database_models import User
+from models.api.auth import UserLogin, UserRegister
+from models.database.user import User
 
 logger = logging.getLogger(__name__)
 
diff --git a/app/services/marketplace_service.py b/app/services/marketplace_service.py
index 94daff7f..1746de0e 100644
--- a/app/services/marketplace_service.py
+++ b/app/services/marketplace_service.py
@@ -14,9 +14,11 @@ from typing import List, Optional
 from sqlalchemy import func
 from sqlalchemy.orm import Session
 
-from models.api_models import (MarketplaceImportJobResponse,
+from models.api.marketplace import (MarketplaceImportJobResponse,
                                MarketplaceImportRequest)
-from models.database_models import MarketplaceImportJob, Shop, User
+from models.database.marketplace import MarketplaceImportJob
+from models.database.shop import Shop
+from models.database.user import User
 
 logger = logging.getLogger(__name__)
 
diff --git a/app/services/product_service.py b/app/services/product_service.py
index 80b6a935..290485ab 100644
--- a/app/services/product_service.py
+++ b/app/services/product_service.py
@@ -14,9 +14,10 @@ from typing import Generator, List, Optional
 from sqlalchemy.exc import IntegrityError
 from sqlalchemy.orm import Session
 
-from models.api_models import (ProductCreate, ProductUpdate,
-                               StockLocationResponse, StockSummaryResponse)
-from models.database_models import Product, Stock
+from models.api.product import ProductCreate, ProductUpdate
+from models.api.stock import StockLocationResponse, StockSummaryResponse
+from models.database.product import Product
+from models.database.stock import Stock
 from utils.data_processing import GTINProcessor, PriceProcessor
 
 logger = logging.getLogger(__name__)
diff --git a/app/services/shop_service.py b/app/services/shop_service.py
index fae9f1df..3f601853 100644
--- a/app/services/shop_service.py
+++ b/app/services/shop_service.py
@@ -14,8 +14,10 @@ from fastapi import HTTPException
 from sqlalchemy import func
 from sqlalchemy.orm import Session
 
-from models.api_models import ShopCreate, ShopProductCreate
-from models.database_models import Product, Shop, ShopProduct, User
+from models.api.shop import ShopCreate, ShopProductCreate
+from models.database.product import Product
+from models.database.shop import Shop, ShopProduct
+from models.database.user import User
 
 logger = logging.getLogger(__name__)
 
diff --git a/app/services/stats_service.py b/app/services/stats_service.py
index 13ec7b74..108abddc 100644
--- a/app/services/stats_service.py
+++ b/app/services/stats_service.py
@@ -13,7 +13,8 @@ from typing import Any, Dict, List
 from sqlalchemy import func
 from sqlalchemy.orm import Session
 
-from models.database_models import Product, Stock
+from models.database.product import Product
+from models.database.stock import Stock
 
 logger = logging.getLogger(__name__)
 
diff --git a/app/services/stock_service.py b/app/services/stock_service.py
index 3c39d797..b362ee78 100644
--- a/app/services/stock_service.py
+++ b/app/services/stock_service.py
@@ -13,9 +13,10 @@ from typing import List, Optional
 
 from sqlalchemy.orm import Session
 
-from models.api_models import (StockAdd, StockCreate, StockLocationResponse,
+from models.api.stock import (StockAdd, StockCreate, StockLocationResponse,
                                StockSummaryResponse, StockUpdate)
-from models.database_models import Product, Stock
+from models.database.product import Product
+from models.database.stock import Stock
 from utils.data_processing import GTINProcessor
 
 logger = logging.getLogger(__name__)
diff --git a/app/tasks/background_tasks.py b/app/tasks/background_tasks.py
index fb2e55cd..47e9e813 100644
--- a/app/tasks/background_tasks.py
+++ b/app/tasks/background_tasks.py
@@ -11,7 +11,7 @@ import logging
 from datetime import datetime
 
 from app.core.database import SessionLocal
-from models.database_models import MarketplaceImportJob
+from models.database.marketplace import MarketplaceImportJob
 from utils.csv_processor import CSVProcessor
 
 logger = logging.getLogger(__name__)
diff --git a/models/api_models.py b/backup/api_models.py
similarity index 100%
rename from models/api_models.py
rename to backup/api_models.py
diff --git a/models/database_models.py b/backup/database_models.py
similarity index 100%
rename from models/database_models.py
rename to backup/database_models.py
diff --git a/backup/test_background_tasks.py b/backup/test_background_tasks.py
index 5edf0153..06dd3c22 100644
--- a/backup/test_background_tasks.py
+++ b/backup/test_background_tasks.py
@@ -5,7 +5,7 @@ from unittest.mock import AsyncMock, patch
 import pytest
 
 from app.tasks.background_tasks import process_marketplace_import
-from models.database_models import MarketplaceImportJob
+from models.database.marketplace import MarketplaceImportJob
 
 
 class TestBackgroundTasks:
diff --git a/backup/test_export.py b/backup/test_export.py
index a1dd0d89..fb3bc699 100644
--- a/backup/test_export.py
+++ b/backup/test_export.py
@@ -4,7 +4,7 @@ from io import StringIO
 
 import pytest
 
-from models.database_models import Product
+from models.database.product import Product
 
 
 class TestExportFunctionality:
diff --git a/backup/test_filtering.py b/backup/test_filtering.py
index fbfd8623..9c5f16a7 100644
--- a/backup/test_filtering.py
+++ b/backup/test_filtering.py
@@ -1,7 +1,7 @@
 # tests/test_filtering.py
 import pytest
 
-from models.database_models import Product
+from models.database.product import Product
 
 
 class TestFiltering:
diff --git a/middleware/auth.py b/middleware/auth.py
index 34d8fb27..d916e6a2 100644
--- a/middleware/auth.py
+++ b/middleware/auth.py
@@ -18,7 +18,7 @@ from jose import jwt
 from passlib.context import CryptContext
 from sqlalchemy.orm import Session
 
-from models.database_models import User
+from models.database.user import User
 
 logger = logging.getLogger(__name__)
 
diff --git a/models/api/__init__.py b/models/api/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/models/api/auth.py b/models/api/auth.py
new file mode 100644
index 00000000..fe6201bd
--- /dev/null
+++ b/models/api/auth.py
@@ -0,0 +1,62 @@
+import re
+from datetime import datetime
+from typing import List, Optional
+
+from pydantic import BaseModel, ConfigDict, EmailStr, Field, field_validator
+
+
+# User Authentication Models
+class UserRegister(BaseModel):
+    email: EmailStr = Field(..., description="Valid email address")
+    username: str = Field(
+        ..., min_length=3, max_length=50, description="Username (3-50 characters)"
+    )
+    password: str = Field(
+        ..., min_length=6, description="Password (minimum 6 characters)"
+    )
+
+    @field_validator("username")
+    @classmethod
+    def validate_username(cls, v):
+        if not re.match(r"^[a-zA-Z0-9_]+$", v):
+            raise ValueError(
+                "Username must contain only letters, numbers, or underscores"
+            )
+        return v.lower().strip()
+
+    @field_validator("password")
+    @classmethod
+    def validate_password(cls, v):
+        if len(v) < 6:
+            raise ValueError("Password must be at least 6 characters long")
+        return v
+
+
+class UserLogin(BaseModel):
+    username: str = Field(..., description="Username")
+    password: str = Field(..., description="Password")
+
+    @field_validator("username")
+    @classmethod
+    def validate_username(cls, v):
+        return v.strip()
+
+
+class UserResponse(BaseModel):
+    model_config = ConfigDict(from_attributes=True)
+
+    id: int
+    email: str
+    username: str
+    role: str
+    is_active: bool
+    last_login: Optional[datetime] = None
+    created_at: datetime
+    updated_at: datetime
+
+
+class LoginResponse(BaseModel):
+    access_token: str
+    token_type: str = "bearer"
+    expires_in: int
+    user: UserResponse
diff --git a/models/api/base.py b/models/api/base.py
new file mode 100644
index 00000000..0b26ddd3
--- /dev/null
+++ b/models/api/base.py
@@ -0,0 +1,16 @@
+from typing import List, TypeVar, Generic
+from pydantic import BaseModel
+
+T = TypeVar('T')
+
+class ListResponse(BaseModel, Generic[T]):
+    """Generic list response model"""
+    items: List[T]
+    total: int
+    skip: int
+    limit: int
+
+class StatusResponse(BaseModel):
+    """Generic status response"""
+    success: bool
+    message: str
diff --git a/models/api/marketplace.py b/models/api/marketplace.py
new file mode 100644
index 00000000..f071b190
--- /dev/null
+++ b/models/api/marketplace.py
@@ -0,0 +1,65 @@
+import re
+from datetime import datetime
+from typing import List, Optional
+
+from pydantic import BaseModel, ConfigDict, EmailStr, Field, field_validator
+
+
+# Marketplace Import Models
+class MarketplaceImportRequest(BaseModel):
+    url: str = Field(..., description="URL to CSV file from marketplace")
+    marketplace: str = Field(
+        default="Letzshop",
+        description="Name of the marketplace (e.g., Letzshop, Amazon, eBay)",
+    )
+    shop_code: str = Field(..., description="Shop code to associate products with")
+    batch_size: Optional[int] = Field(
+        1000, gt=0, le=10000, description="Batch size for processing"
+    )
+
+    @field_validator("url")
+    @classmethod
+    def validate_url(cls, v):
+        if not v.startswith(("http://", "https://")):
+            raise ValueError("URL must start with http:// or https://")
+        return v
+
+    @field_validator("marketplace")
+    @classmethod
+    def validate_marketplace(cls, v):
+        # You can add validation for supported marketplaces here
+        supported_marketplaces = [
+            "Letzshop",
+            "Amazon",
+            "eBay",
+            "Etsy",
+            "Shopify",
+            "Other",
+        ]
+        if v not in supported_marketplaces:
+            # For now, allow any marketplace but log it
+            pass
+        return v.strip()
+
+    @field_validator("shop_code")
+    @classmethod
+    def validate_shop_code(cls, v):
+        return v.upper().strip()
+
+
+class MarketplaceImportJobResponse(BaseModel):
+    job_id: int
+    status: str
+    marketplace: str
+    shop_id: int
+    shop_code: Optional[str] = None  # Will be populated from shop relationship
+    shop_name: str
+    message: Optional[str] = None
+    imported: Optional[int] = 0
+    updated: Optional[int] = 0
+    total_processed: Optional[int] = 0
+    error_count: Optional[int] = 0
+    error_message: Optional[str] = None
+    created_at: Optional[datetime] = None
+    started_at: Optional[datetime] = None
+    completed_at: Optional[datetime] = None
diff --git a/models/api/product.py b/models/api/product.py
new file mode 100644
index 00000000..d587be77
--- /dev/null
+++ b/models/api/product.py
@@ -0,0 +1,83 @@
+import re
+from datetime import datetime
+from typing import List, Optional
+
+from pydantic import BaseModel, ConfigDict, EmailStr, Field, field_validator
+from models.api.stock import StockSummaryResponse
+
+class ProductBase(BaseModel):
+    product_id: Optional[str] = None
+    title: Optional[str] = None
+    description: Optional[str] = None
+    link: Optional[str] = None
+    image_link: Optional[str] = None
+    availability: Optional[str] = None
+    price: Optional[str] = None
+    brand: Optional[str] = None
+    gtin: Optional[str] = None
+    mpn: Optional[str] = None
+    condition: Optional[str] = None
+    adult: Optional[str] = None
+    multipack: Optional[int] = None
+    is_bundle: Optional[str] = None
+    age_group: Optional[str] = None
+    color: Optional[str] = None
+    gender: Optional[str] = None
+    material: Optional[str] = None
+    pattern: Optional[str] = None
+    size: Optional[str] = None
+    size_type: Optional[str] = None
+    size_system: Optional[str] = None
+    item_group_id: Optional[str] = None
+    google_product_category: Optional[str] = None
+    product_type: Optional[str] = None
+    custom_label_0: Optional[str] = None
+    custom_label_1: Optional[str] = None
+    custom_label_2: Optional[str] = None
+    custom_label_3: Optional[str] = None
+    custom_label_4: Optional[str] = None
+    additional_image_link: Optional[str] = None
+    sale_price: Optional[str] = None
+    unit_pricing_measure: Optional[str] = None
+    unit_pricing_base_measure: Optional[str] = None
+    identifier_exists: Optional[str] = None
+    shipping: Optional[str] = None
+    currency: Optional[str] = None
+    # New marketplace fields
+    marketplace: Optional[str] = None
+    shop_name: Optional[str] = None
+
+
+class ProductCreate(ProductBase):
+    product_id: str = Field(..., min_length=1, description="Product ID is required")
+    title: str = Field(..., min_length=1, description="Title is required")
+
+    @field_validator("product_id", "title")
+    @classmethod
+    def validate_required_fields(cls, v):
+        if not v or not v.strip():
+            raise ValueError("Field cannot be empty")
+        return v.strip()
+
+
+class ProductUpdate(ProductBase):
+    pass
+
+
+class ProductResponse(ProductBase):
+    model_config = ConfigDict(from_attributes=True)
+
+    id: int
+    created_at: datetime
+    updated_at: datetime
+
+class ProductListResponse(BaseModel):
+    products: List[ProductResponse]
+    total: int
+    skip: int
+    limit: int
+
+
+class ProductDetailResponse(BaseModel):
+    product: ProductResponse
+    stock_info: Optional[StockSummaryResponse] = None
diff --git a/models/api/shop.py b/models/api/shop.py
new file mode 100644
index 00000000..d27fd9b7
--- /dev/null
+++ b/models/api/shop.py
@@ -0,0 +1,125 @@
+import re
+from datetime import datetime
+from typing import List, Optional
+
+from pydantic import BaseModel, ConfigDict, EmailStr, Field, field_validator
+from models.api.product import ProductResponse
+
+class ShopCreate(BaseModel):
+    shop_code: str = Field(
+        ...,
+        min_length=3,
+        max_length=50,
+        description="Unique shop code (e.g., TECHSTORE)",
+    )
+    shop_name: str = Field(
+        ..., min_length=1, max_length=200, description="Display name of the shop"
+    )
+    description: Optional[str] = Field(
+        None, max_length=2000, description="Shop description"
+    )
+    contact_email: Optional[str] = None
+    contact_phone: Optional[str] = None
+    website: Optional[str] = None
+    business_address: Optional[str] = None
+    tax_number: Optional[str] = None
+
+    @field_validator("shop_code")
+    def validate_shop_code(cls, v):
+        # Convert to uppercase and check format
+        v = v.upper().strip()
+        if not v.replace("_", "").replace("-", "").isalnum():
+            raise ValueError(
+                "Shop code must be alphanumeric (underscores and hyphens allowed)"
+            )
+        return v
+
+    @field_validator("contact_email")
+    def validate_contact_email(cls, v):
+        if v and ("@" not in v or "." not in v):
+            raise ValueError("Invalid email format")
+        return v.lower() if v else v
+
+
+class ShopUpdate(BaseModel):
+    shop_name: Optional[str] = Field(None, min_length=1, max_length=200)
+    description: Optional[str] = Field(None, max_length=2000)
+    contact_email: Optional[str] = None
+    contact_phone: Optional[str] = None
+    website: Optional[str] = None
+    business_address: Optional[str] = None
+    tax_number: Optional[str] = None
+
+    @field_validator("contact_email")
+    def validate_contact_email(cls, v):
+        if v and ("@" not in v or "." not in v):
+            raise ValueError("Invalid email format")
+        return v.lower() if v else v
+
+
+class ShopResponse(BaseModel):
+    model_config = ConfigDict(from_attributes=True)
+
+    id: int
+    shop_code: str
+    shop_name: str
+    description: Optional[str]
+    owner_id: int
+    contact_email: Optional[str]
+    contact_phone: Optional[str]
+    website: Optional[str]
+    business_address: Optional[str]
+    tax_number: Optional[str]
+    is_active: bool
+    is_verified: bool
+    created_at: datetime
+    updated_at: datetime
+
+
+class ShopListResponse(BaseModel):
+    shops: List[ShopResponse]
+    total: int
+    skip: int
+    limit: int
+
+class ShopProductCreate(BaseModel):
+    product_id: str = Field(..., description="Product ID to add to shop")
+    shop_product_id: Optional[str] = Field(
+        None, description="Shop's internal product ID"
+    )
+    shop_price: Optional[float] = Field(
+        None, ge=0, description="Shop-specific price override"
+    )
+    shop_sale_price: Optional[float] = Field(
+        None, ge=0, description="Shop-specific sale price"
+    )
+    shop_currency: Optional[str] = Field(None, description="Shop-specific currency")
+    shop_availability: Optional[str] = Field(
+        None, description="Shop-specific availability"
+    )
+    shop_condition: Optional[str] = Field(None, description="Shop-specific condition")
+    is_featured: bool = Field(False, description="Featured product flag")
+    min_quantity: int = Field(1, ge=1, description="Minimum order quantity")
+    max_quantity: Optional[int] = Field(
+        None, ge=1, description="Maximum order quantity"
+    )
+
+
+class ShopProductResponse(BaseModel):
+    model_config = ConfigDict(from_attributes=True)
+
+    id: int
+    shop_id: int
+    product: ProductResponse
+    shop_product_id: Optional[str]
+    shop_price: Optional[float]
+    shop_sale_price: Optional[float]
+    shop_currency: Optional[str]
+    shop_availability: Optional[str]
+    shop_condition: Optional[str]
+    is_featured: bool
+    is_active: bool
+    min_quantity: int
+    max_quantity: Optional[int]
+    created_at: datetime
+    updated_at: datetime
diff --git a/models/api/stats.py b/models/api/stats.py
new file mode 100644
index 00000000..9d09a208
--- /dev/null
+++ b/models/api/stats.py
@@ -0,0 +1,22 @@
+import re
+from datetime import datetime
+from typing import List, Optional
+
+from pydantic import BaseModel, ConfigDict, EmailStr, Field, field_validator
+
+
+class StatsResponse(BaseModel):
+    total_products: int
+    unique_brands: int
+    unique_categories: int
+    unique_marketplaces: int = 0
+    unique_shops: int = 0
+    total_stock_entries: int = 0
+    total_inventory_quantity: int = 0
+
+
+class MarketplaceStatsResponse(BaseModel):
+    marketplace: str
+    total_products: int
+    unique_shops: int
+    unique_brands: int
\ No newline at end of file
diff --git a/models/api/stock.py b/models/api/stock.py
new file mode 100644
index 00000000..f6d057bb
--- /dev/null
+++ b/models/api/stock.py
@@ -0,0 +1,46 @@
+import re
+from datetime import datetime
+from typing import List, Optional
+
+from pydantic import BaseModel, ConfigDict, EmailStr, Field, field_validator
+
+
+# Stock Models
+class StockBase(BaseModel):
+    gtin: str = Field(..., min_length=1, description="GTIN is required")
+    location: str = Field(..., min_length=1, description="Location is required")
+
+
+class StockCreate(StockBase):
+    quantity: int = Field(ge=0, description="Quantity must be non-negative")
+
+
+class StockAdd(StockBase):
+    quantity: int = Field(gt=0, description="Quantity to add must be positive")
+
+
+class StockUpdate(BaseModel):
+    quantity: int = Field(ge=0, description="Quantity must be non-negative")
+
+
+class StockResponse(BaseModel):
+    model_config = ConfigDict(from_attributes=True)
+
+    id: int
+    gtin: str
+    location: str
+    quantity: int
+    created_at: datetime
+    updated_at: datetime
+
+
+class StockLocationResponse(BaseModel):
+    location: str
+    quantity: int
+
+
+class StockSummaryResponse(BaseModel):
+    gtin: str
+    total_quantity: int
+    locations: List[StockLocationResponse]
+    product_title: Optional[str] = None
\ No newline at end of file
diff --git a/models/database/__init__.py b/models/database/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/models/database/base.py b/models/database/base.py
new file mode 100644
index 00000000..c7e48696
--- /dev/null
+++ b/models/database/base.py
@@ -0,0 +1,10 @@
+from datetime import datetime
+from sqlalchemy import Column, DateTime
+from app.core.database import Base
+
+class TimestampMixin:
+    """Mixin to add created_at and updated_at timestamps to models"""
+    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = Column(
+        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
+    )
diff --git a/models/database/marketplace.py b/models/database/marketplace.py
new file mode 100644
index 00000000..8c347da0
--- /dev/null
+++ b/models/database/marketplace.py
@@ -0,0 +1,61 @@
+from datetime import datetime
+
+from sqlalchemy import (Boolean, Column, DateTime, Float, ForeignKey, Index,
+                        Integer, String, Text, UniqueConstraint)
+from sqlalchemy.orm import relationship
+
+# Import Base from the central database module instead of creating a new one
+from app.core.database import Base
+
+
+class MarketplaceImportJob(Base):
+    __tablename__ = "marketplace_import_jobs"
+
+    id = Column(Integer, primary_key=True, index=True)
+    status = Column(
+        String, nullable=False, default="pending"
+    )  # pending, processing, completed, failed, completed_with_errors
+    source_url = Column(String, nullable=False)
+    marketplace = Column(
+        String, nullable=False, index=True, default="Letzshop"
+    )  # Index for marketplace filtering
+    shop_name = Column(String, nullable=False, index=True)  # Index for shop filtering
+    shop_id = Column(
+        Integer, ForeignKey("shops.id"), nullable=False
+    )  # Add proper foreign key
+    user_id = Column(
+        Integer, ForeignKey("users.id"), nullable=False
+    )  # Foreign key to users table
+
+    # Results
+    imported_count = Column(Integer, default=0)
+    updated_count = Column(Integer, default=0)
+    error_count = Column(Integer, default=0)
+    total_processed = Column(Integer, default=0)
+
+    # Error handling
+    error_message = Column(String)
+
+    # Timestamps
+    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
+    started_at = Column(DateTime)
+    completed_at = Column(DateTime)
+
+    # Relationship to user
+    user = relationship("User", foreign_keys=[user_id])
+    shop = relationship("Shop", back_populates="marketplace_import_jobs")
+
+    # Additional indexes for marketplace import job queries
+    __table_args__ = (
+        Index(
+            "idx_marketplace_import_user_marketplace", "user_id", "marketplace"
+        ),  # User's marketplace imports
+        Index("idx_marketplace_import_shop_status", "status"),  # Shop import status
+        Index("idx_marketplace_import_shop_id", "shop_id"),
+    )
+
+    def __repr__(self):
+        return (
+            f"<MarketplaceImportJob(id={self.id}, marketplace='{self.marketplace}', shop='{self.shop_name}', "
+            f"status='{self.status}', imported={self.imported_count})>"
+        )
diff --git a/models/database/product.py b/models/database/product.py
new file mode 100644
index 00000000..5181d95e
--- /dev/null
+++ b/models/database/product.py
@@ -0,0 +1,88 @@
+from datetime import datetime
+
+from sqlalchemy import (Boolean, Column, DateTime, Float, ForeignKey, Index,
+                        Integer, String, Text, UniqueConstraint)
+from sqlalchemy.orm import relationship
+
+# Import Base from the central database module instead of creating a new one
+from app.core.database import Base
+
+
+class Product(Base):
+    __tablename__ = "products"
+
+    id = Column(Integer, primary_key=True, index=True)
+    product_id = Column(String, unique=True, index=True, nullable=False)
+    title = Column(String, nullable=False)
+    description = Column(String)
+    link = Column(String)
+    image_link = Column(String)
+    availability = Column(String, index=True)  # Index for filtering
+    price = Column(String)
+    brand = Column(String, index=True)  # Index for filtering
+    gtin = Column(String, index=True)  # Index for stock lookups
+    mpn = Column(String)
+    condition = Column(String)
+    adult = Column(String)
+    multipack = Column(Integer)
+    is_bundle = Column(String)
+    age_group = Column(String)
+    color = Column(String)
+    gender = Column(String)
+    material = Column(String)
+    pattern = Column(String)
+    size = Column(String)
+    size_type = Column(String)
+    size_system = Column(String)
+    item_group_id = Column(String)
+    google_product_category = Column(String, index=True)  # Index for filtering
+    product_type = Column(String)
+    custom_label_0 = Column(String)
+    custom_label_1 = Column(String)
+    custom_label_2 = Column(String)
+    custom_label_3 = Column(String)
+    custom_label_4 = Column(String)
+    additional_image_link = Column(String)
+    sale_price = Column(String)
+    unit_pricing_measure = Column(String)
+    unit_pricing_base_measure = Column(String)
+    identifier_exists = Column(String)
+    shipping = Column(String)
+    currency = Column(String)
+
+    # New marketplace fields
+    marketplace = Column(
+        String, index=True, nullable=True, default="Letzshop"
+    )  # Index for marketplace filtering
+    shop_name = Column(String, index=True, nullable=True)  # Index for shop filtering
+
+    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = Column(
+        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
+    )
+
+    # Relationship to stock (one-to-many via GTIN)
+    stock_entries = relationship(
+        "Stock",
+        foreign_keys="Stock.gtin",
+        primaryjoin="Product.gtin == Stock.gtin",
+        viewonly=True,
+    )
+    shop_products = relationship("ShopProduct", back_populates="product")
+
+    # Additional indexes for marketplace queries
+    __table_args__ = (
+        Index(
+            "idx_marketplace_shop", "marketplace", "shop_name"
+        ),  # Composite index for marketplace+shop queries
+        Index(
+            "idx_marketplace_brand", "marketplace", "brand"
+        ),  # Composite index for marketplace+brand queries
+    )
+
+    def __repr__(self):
+        return (
+            f"<Product(product_id='{self.product_id}', title='{self.title}', marketplace='{self.marketplace}', "
+            f"shop='{self.shop_name}')>"
+        )
+
diff --git a/models/database/shop.py b/models/database/shop.py
new file mode 100644
index 00000000..09ca6ffd
--- /dev/null
+++ b/models/database/shop.py
@@ -0,0 +1,84 @@
+from datetime import datetime
+
+from sqlalchemy import (Boolean, Column, DateTime, Float, ForeignKey, Index,
+                        Integer, String, Text, UniqueConstraint)
+from sqlalchemy.orm import relationship
+
+# Import Base from the central database module instead of creating a new one
+from app.core.database import Base
+
+
+class Shop(Base):
+    __tablename__ = "shops"
+
+    id = Column(Integer, primary_key=True, index=True)
+    shop_code = Column(
+        String, unique=True, index=True, nullable=False
+    )  # e.g., "TECHSTORE", "FASHIONHUB"
+    shop_name = Column(String, nullable=False)  # Display name
+    description = Column(Text)
+    owner_id = Column(Integer, ForeignKey("users.id"), nullable=False)
+
+    # Contact information
+    contact_email = Column(String)
+    contact_phone = Column(String)
+    website = Column(String)
+
+    # Business information
+    business_address = Column(Text)
+    tax_number = Column(String)
+
+    # Status
+    is_active = Column(Boolean, default=True)
+    is_verified = Column(Boolean, default=False)
+
+    # Timestamps
+    created_at = Column(DateTime, default=datetime.utcnow)
+    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow)
+
+    # Relationships
+    owner = relationship("User", back_populates="owned_shops")
+    shop_products = relationship("ShopProduct", back_populates="shop")
+    marketplace_import_jobs = relationship(
+        "MarketplaceImportJob", back_populates="shop"
+    )
+
+class ShopProduct(Base):
+    __tablename__ = "shop_products"
+
+    id = Column(Integer, primary_key=True, index=True)
+    shop_id = Column(Integer, ForeignKey("shops.id"), nullable=False)
+    product_id = Column(Integer, ForeignKey("products.id"), nullable=False)
+
+    # Shop-specific overrides (can override the main product data)
+    shop_product_id = Column(String)  # Shop's internal product ID
+    shop_price = Column(Float)  # Override main product price
+    shop_sale_price = Column(Float)
+    shop_currency = Column(String)
+    shop_availability = Column(String)  # Override availability
+    shop_condition = Column(String)
+
+    # Shop-specific metadata
+    is_featured = Column(Boolean, default=False)
+    is_active = Column(Boolean, default=True)
+    display_order = Column(Integer, default=0)
+
+    # Inventory management
+    min_quantity = Column(Integer, default=1)
+    max_quantity = Column(Integer)
+
+    # Timestamps
+    created_at = Column(DateTime, default=datetime.utcnow)
+    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow)
+
+    # Relationships
+    shop = relationship("Shop", back_populates="shop_products")
+    product = relationship("Product", back_populates="shop_products")
+
+    # Constraints
+    __table_args__ = (
+        UniqueConstraint("shop_id", "product_id", name="uq_shop_product"),
+        Index("idx_shop_product_active", "shop_id", "is_active"),
+        Index("idx_shop_product_featured", "shop_id", "is_featured"),
+    )
+
diff --git a/models/database/stock.py b/models/database/stock.py
new file mode 100644
index 00000000..ef66010d
--- /dev/null
+++ b/models/database/stock.py
@@ -0,0 +1,40 @@
+from datetime import datetime
+
+from sqlalchemy import (Boolean, Column, DateTime, Float, ForeignKey, Index,
+                        Integer, String, Text, UniqueConstraint)
+from sqlalchemy.orm import relationship
+
+# Import Base from the central database module instead of creating a new one
+from app.core.database import Base
+
+
+class Stock(Base):
+    __tablename__ = "stock"
+
+    id = Column(Integer, primary_key=True, index=True)
+    gtin = Column(
+        String, index=True, nullable=False
+    )  # Foreign key relationship would be ideal
+    location = Column(String, nullable=False, index=True)
+    quantity = Column(Integer, nullable=False, default=0)
+    reserved_quantity = Column(Integer, default=0)  # For orders being processed
+    shop_id = Column(Integer, ForeignKey("shops.id"))  # Optional: shop-specific stock
+
+    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = Column(
+        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
+    )
+
+    # Relationships
+    shop = relationship("Shop")
+
+    # Composite unique constraint to prevent duplicate GTIN-location combinations
+    __table_args__ = (
+        UniqueConstraint("gtin", "location", name="uq_stock_gtin_location"),
+        Index(
+            "idx_stock_gtin_location", "gtin", "location"
+        ),  # Composite index for efficient queries
+    )
+
+    def __repr__(self):
+        return f"<Stock(gtin='{self.gtin}', location='{self.location}', quantity={self.quantity})>"
diff --git a/models/database/user.py b/models/database/user.py
new file mode 100644
index 00000000..bb1ddf62
--- /dev/null
+++ b/models/database/user.py
@@ -0,0 +1,33 @@
+from datetime import datetime
+
+from sqlalchemy import (Boolean, Column, DateTime, Float, ForeignKey, Index,
+                        Integer, String, Text, UniqueConstraint)
+from sqlalchemy.orm import relationship
+
+# Import Base from the central database module instead of creating a new one
+from app.core.database import Base
+
+
+class User(Base):
+    __tablename__ = "users"
+
+    id = Column(Integer, primary_key=True, index=True)
+    email = Column(String, unique=True, index=True, nullable=False)
+    username = Column(String, unique=True, index=True, nullable=False)
+    hashed_password = Column(String, nullable=False)
+    role = Column(String, nullable=False, default="user")  # user, admin, shop_owner
+    is_active = Column(Boolean, default=True, nullable=False)
+    last_login = Column(DateTime, nullable=True)
+    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = Column(
+        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
+    )
+
+    # Relationships
+    marketplace_import_jobs = relationship(
+        "MarketplaceImportJob", back_populates="user"
+    )
+    owned_shops = relationship("Shop", back_populates="owner")
+
+    def __repr__(self):
+        return f"<User(username='{self.username}', email='{self.email}', role='{self.role}')>"
diff --git a/models_restructure.md b/models_restructure.md
index 7ce5d2ff..bb0d832e 100644
--- a/models_restructure.md
+++ b/models_restructure.md
@@ -152,7 +152,7 @@ class StatusResponse(BaseModel):
 
 ```python
 # In route files
-from models.database import User, Product, Stock
+from models.database.user import User, Product, Stock
 from models.api.auth import UserLogin, UserResponse
 from models.api.product import ProductCreate, ProductListResponse
 
diff --git a/models_restructure_script.ps1 b/models_restructure_script.ps1
index 2975e1db..a5431914 100644
--- a/models_restructure_script.ps1
+++ b/models_restructure_script.ps1
@@ -1,6 +1,6 @@
-# restructure_models.ps1 - PowerShell script to restructure models from single files to domain-organized structure
+# restructure_models.ps1 - Final working script using temp files
 
-Write-Host "🔄 Starting models restructure..." -ForegroundColor Cyan
+Write-Host "📄 Starting models restructure..." -ForegroundColor Cyan
 
 # Create new directory structure for models
 Write-Host "📁 Creating models directory structure..." -ForegroundColor Yellow
@@ -10,13 +10,19 @@ $modelDirectories = @(
 )
 
 foreach ($dir in $modelDirectories) {
-    New-Item -Path $dir -ItemType Directory -Force | Out-Null
-    Write-Host "  Created: $dir" -ForegroundColor Gray
+    if (!(Test-Path $dir)) {
+        New-Item -Path $dir -ItemType Directory -Force | Out-Null
+        Write-Host "  Created: $dir" -ForegroundColor Green
+    } else {
+        Write-Host "  Exists: $dir" -ForegroundColor Gray
+    }
 }
 
 # Backup original model files
 Write-Host "💾 Backing up original model files..." -ForegroundColor Yellow
-New-Item -Path "models\backup" -ItemType Directory -Force | Out-Null
+if (!(Test-Path "models\backup")) {
+    New-Item -Path "models\backup" -ItemType Directory -Force | Out-Null
+}
 
 $originalFiles = @("models\database_models.py", "models\api_models.py")
 foreach ($file in $originalFiles) {
@@ -26,11 +32,23 @@ foreach ($file in $originalFiles) {
     }
 }
 
-# Create database models files
 Write-Host "📄 Creating database model files..." -ForegroundColor Yellow
 
-# models/database/__init__.py
-$databaseInit = @"
+# Function to create files using temp file approach
+function New-PythonFile {
+    param(
+        [string]$Path,
+        [string]$TempContent
+    )
+
+    $tempFile = [System.IO.Path]::GetTempFileName()
+    $TempContent | Out-File $tempFile -Encoding UTF8
+    Move-Item $tempFile $Path -Force
+}
+
+# Create models/database/__init__.py
+Write-Host "  Creating models\database\__init__.py..." -ForegroundColor Gray
+$initContent = @"
 # models/database/__init__.py
 from .user import User
 from .product import Product
@@ -40,437 +58,104 @@ from .marketplace import MarketplaceImportJob
 
 __all__ = [
     "User",
-    "Product", 
+    "Product",
     "Shop", "ShopProduct",
     "Stock",
     "MarketplaceImportJob",
 ]
 "@
+New-PythonFile -Path "models\database\__init__.py" -TempContent $initContent
 
-$databaseInit | Out-File -FilePath "models\database\__init__.py" -Encoding UTF8
+# Create models/database/base.py
+Write-Host "  Creating models\database\base.py..." -ForegroundColor Gray
+$baseContent = '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'
+$decodedBase = [System.Text.Encoding]::UTF8.GetString([System.Convert]::FromBase64String($baseContent))
+$decodedBase = $decodedBase.Replace('-----BEGIN PYTHON CODE-----', '').Replace('-----END PYTHON CODE-----', '').Trim()
+$decodedBase | Out-File "models\database\base.py" -Encoding UTF8
 
-# models/database/base.py
-$databaseBase = @"
-# models/database/base.py
-from datetime import datetime
-from sqlalchemy import Column, DateTime
-from app.core.database import Base
-
-
-class TimestampMixin:
-    """Mixin to add created_at and updated_at timestamps to models"""
-    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
-    updated_at = Column(
-        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
-    )
-"@
-
-$databaseBase | Out-File -FilePath "models\database\base.py" -Encoding UTF8
-
-# models/database/user.py
-$userModel = @"
-# models/database/user.py
-from datetime import datetime
-from sqlalchemy import Boolean, Column, DateTime, Integer, String
-from sqlalchemy.orm import relationship
-from app.core.database import Base
-
-
-class User(Base):
-    __tablename__ = "users"
-
-    id = Column(Integer, primary_key=True, index=True)
-    email = Column(String, unique=True, index=True, nullable=False)
-    username = Column(String, unique=True, index=True, nullable=False)
-    hashed_password = Column(String, nullable=False)
-    role = Column(String, nullable=False, default="user")  # user, admin, shop_owner
-    is_active = Column(Boolean, default=True, nullable=False)
-    last_login = Column(DateTime, nullable=True)
-    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
-    updated_at = Column(
-        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
-    )
-
-    # Relationships
-    marketplace_import_jobs = relationship(
-        "MarketplaceImportJob", back_populates="user"
-    )
-    owned_shops = relationship("Shop", back_populates="owner")
-
-    def __repr__(self):
-        return f"<User(username='{self.username}', email='{self.email}', role='{self.role}')>"
-"@
-
-$userModel | Out-File -FilePath "models\database\user.py" -Encoding UTF8
-
-# models/database/product.py
-$productModel = @"
-# models/database/product.py
-from datetime import datetime
-from sqlalchemy import Column, DateTime, Index, Integer, String
-from sqlalchemy.orm import relationship
-from app.core.database import Base
-
-
-class Product(Base):
-    __tablename__ = "products"
-
-    id = Column(Integer, primary_key=True, index=True)
-    product_id = Column(String, unique=True, index=True, nullable=False)
-    title = Column(String, nullable=False)
-    description = Column(String)
-    link = Column(String)
-    image_link = Column(String)
-    availability = Column(String, index=True)  # Index for filtering
-    price = Column(String)
-    brand = Column(String, index=True)  # Index for filtering
-    gtin = Column(String, index=True)  # Index for stock lookups
-    mpn = Column(String)
-    condition = Column(String)
-    adult = Column(String)
-    multipack = Column(Integer)
-    is_bundle = Column(String)
-    age_group = Column(String)
-    color = Column(String)
-    gender = Column(String)
-    material = Column(String)
-    pattern = Column(String)
-    size = Column(String)
-    size_type = Column(String)
-    size_system = Column(String)
-    item_group_id = Column(String)
-    google_product_category = Column(String, index=True)  # Index for filtering
-    product_type = Column(String)
-    custom_label_0 = Column(String)
-    custom_label_1 = Column(String)
-    custom_label_2 = Column(String)
-    custom_label_3 = Column(String)
-    custom_label_4 = Column(String)
-    additional_image_link = Column(String)
-    sale_price = Column(String)
-    unit_pricing_measure = Column(String)
-    unit_pricing_base_measure = Column(String)
-    identifier_exists = Column(String)
-    shipping = Column(String)
-    currency = Column(String)
-
-    # New marketplace fields
-    marketplace = Column(
-        String, index=True, nullable=True, default="Letzshop"
-    )  # Index for marketplace filtering
-    shop_name = Column(String, index=True, nullable=True)  # Index for shop filtering
-
-    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
-    updated_at = Column(
-        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
-    )
-
-    # Relationship to stock (one-to-many via GTIN)
-    stock_entries = relationship(
-        "Stock",
-        foreign_keys="Stock.gtin",
-        primaryjoin="Product.gtin == Stock.gtin",
-        viewonly=True,
-    )
-    shop_products = relationship("ShopProduct", back_populates="product")
-
-    # Additional indexes for marketplace queries
-    __table_args__ = (
-        Index(
-            "idx_marketplace_shop", "marketplace", "shop_name"
-        ),  # Composite index for marketplace+shop queries
-        Index(
-            "idx_marketplace_brand", "marketplace", "brand"
-        ),  # Composite index for marketplace+brand queries
-    )
-
-    def __repr__(self):
-        return (
-            f"<Product(product_id='{self.product_id}', title='{self.title}', marketplace='{self.marketplace}', "
-            f"shop='{self.shop_name}')>"
-        )
-"@
-
-$productModel | Out-File -FilePath "models\database\product.py" -Encoding UTF8
-
-# models/database/shop.py
-$shopModel = @"
-# models/database/shop.py
-from datetime import datetime
-from sqlalchemy import Boolean, Column, DateTime, Float, ForeignKey, Index, Integer, String, Text, UniqueConstraint
-from sqlalchemy.orm import relationship
-from app.core.database import Base
-
-
-class Shop(Base):
-    __tablename__ = "shops"
-
-    id = Column(Integer, primary_key=True, index=True)
-    shop_code = Column(
-        String, unique=True, index=True, nullable=False
-    )  # e.g., "TECHSTORE", "FASHIONHUB"
-    shop_name = Column(String, nullable=False)  # Display name
-    description = Column(Text)
-    owner_id = Column(Integer, ForeignKey("users.id"), nullable=False)
-
-    # Contact information
-    contact_email = Column(String)
-    contact_phone = Column(String)
-    website = Column(String)
-
-    # Business information
-    business_address = Column(Text)
-    tax_number = Column(String)
-
-    # Status
-    is_active = Column(Boolean, default=True)
-    is_verified = Column(Boolean, default=False)
-
-    # Timestamps
-    created_at = Column(DateTime, default=datetime.utcnow)
-    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow)
-
-    # Relationships
-    owner = relationship("User", back_populates="owned_shops")
-    shop_products = relationship("ShopProduct", back_populates="shop")
-    marketplace_import_jobs = relationship(
-        "MarketplaceImportJob", back_populates="shop"
-    )
-
-
-class ShopProduct(Base):
-    __tablename__ = "shop_products"
-
-    id = Column(Integer, primary_key=True, index=True)
-    shop_id = Column(Integer, ForeignKey("shops.id"), nullable=False)
-    product_id = Column(Integer, ForeignKey("products.id"), nullable=False)
-
-    # Shop-specific overrides (can override the main product data)
-    shop_product_id = Column(String)  # Shop's internal product ID
-    shop_price = Column(Float)  # Override main product price
-    shop_sale_price = Column(Float)
-    shop_currency = Column(String)
-    shop_availability = Column(String)  # Override availability
-    shop_condition = Column(String)
-
-    # Shop-specific metadata
-    is_featured = Column(Boolean, default=False)
-    is_active = Column(Boolean, default=True)
-    display_order = Column(Integer, default=0)
-
-    # Inventory management
-    min_quantity = Column(Integer, default=1)
-    max_quantity = Column(Integer)
-
-    # Timestamps
-    created_at = Column(DateTime, default=datetime.utcnow)
-    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow)
-
-    # Relationships
-    shop = relationship("Shop", back_populates="shop_products")
-    product = relationship("Product", back_populates="shop_products")
-
-    # Constraints
-    __table_args__ = (
-        UniqueConstraint("shop_id", "product_id", name="uq_shop_product"),
-        Index("idx_shop_product_active", "shop_id", "is_active"),
-        Index("idx_shop_product_featured", "shop_id", "is_featured"),
-    )
-"@
-
-$shopModel | Out-File -FilePath "models\database\shop.py" -Encoding UTF8
-
-# models/database/stock.py
-$stockModel = @"
-# models/database/stock.py
-from datetime import datetime
-from sqlalchemy import Column, DateTime, ForeignKey, Index, Integer, String, UniqueConstraint
-from sqlalchemy.orm import relationship
-from app.core.database import Base
-
-
-class Stock(Base):
-    __tablename__ = "stock"
-
-    id = Column(Integer, primary_key=True, index=True)
-    gtin = Column(
-        String, index=True, nullable=False
-    )  # Foreign key relationship would be ideal
-    location = Column(String, nullable=False, index=True)
-    quantity = Column(Integer, nullable=False, default=0)
-    reserved_quantity = Column(Integer, default=0)  # For orders being processed
-    shop_id = Column(Integer, ForeignKey("shops.id"))  # Optional: shop-specific stock
-
-    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
-    updated_at = Column(
-        DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False
-    )
-
-    # Relationships
-    shop = relationship("Shop")
-
-    # Composite unique constraint to prevent duplicate GTIN-location combinations
-    __table_args__ = (
-        UniqueConstraint("gtin", "location", name="uq_stock_gtin_location"),
-        Index(
-            "idx_stock_gtin_location", "gtin", "location"
-        ),  # Composite index for efficient queries
-    )
-
-    def __repr__(self):
-        return f"<Stock(gtin='{self.gtin}', location='{self.location}', quantity={self.quantity})>"
-"@
-
-$stockModel | Out-File -FilePath "models\database\stock.py" -Encoding UTF8
-
-# models/database/marketplace.py
-$marketplaceModel = @"
-# models/database/marketplace.py
-from datetime import datetime
-from sqlalchemy import Column, DateTime, ForeignKey, Index, Integer, String
-from sqlalchemy.orm import relationship
-from app.core.database import Base
-
-
-class MarketplaceImportJob(Base):
-    __tablename__ = "marketplace_import_jobs"
-
-    id = Column(Integer, primary_key=True, index=True)
-    status = Column(
-        String, nullable=False, default="pending"
-    )  # pending, processing, completed, failed, completed_with_errors
-    source_url = Column(String, nullable=False)
-    marketplace = Column(
-        String, nullable=False, index=True, default="Letzshop"
-    )  # Index for marketplace filtering
-    shop_name = Column(String, nullable=False, index=True)  # Index for shop filtering
-    shop_id = Column(
-        Integer, ForeignKey("shops.id"), nullable=False
-    )  # Add proper foreign key
-    user_id = Column(
-        Integer, ForeignKey("users.id"), nullable=False
-    )  # Foreign key to users table
-
-    # Results
-    imported_count = Column(Integer, default=0)
-    updated_count = Column(Integer, default=0)
-    error_count = Column(Integer, default=0)
-    total_processed = Column(Integer, default=0)
-
-    # Error handling
-    error_message = Column(String)
-
-    # Timestamps
-    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
-    started_at = Column(DateTime)
-    completed_at = Column(DateTime)
-
-    # Relationship to user
-    user = relationship("User", foreign_keys=[user_id])
-    shop = relationship("Shop", back_populates="marketplace_import_jobs")
-
-    # Additional indexes for marketplace import job queries
-    __table_args__ = (
-        Index(
-            "idx_marketplace_import_user_marketplace", "user_id", "marketplace"
-        ),  # User's marketplace imports
-        Index("idx_marketplace_import_shop_status", "status"),  # Shop import status
-        Index("idx_marketplace_import_shop_id", "shop_id"),
-    )
-
-    def __repr__(self):
-        return (
-            f"<MarketplaceImportJob(id={self.id}, marketplace='{self.marketplace}', shop='{self.shop_name}', "
-            f"status='{self.status}', imported={self.imported_count})>"
-        )
-"@
-
-$marketplaceModel | Out-File -FilePath "models\database\marketplace.py" -Encoding UTF8
-
-# Create API models files
-Write-Host "📄 Creating API model files..." -ForegroundColor Yellow
+# Create models/database/user.py
+Write-Host "  Creating models\database\user.py..." -ForegroundColor Gray
+$userContent = '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'
+$decodedUser = [System.Text.Encoding]::UTF8.GetString([System.Convert]::FromBase64String($userContent))
+$decodedUser = $decodedUser.Replace('-----BEGIN PYTHON CODE-----', '').Replace('-----END PYTHON CODE-----', '').Trim()
+$decodedUser | Out-File "models\database\user.py" -Encoding UTF8
 
+# Create models/api/__init__.py
+Write-Host "  Creating models\api\__init__.py..." -ForegroundColor Gray
+$apiInitContent = @"
 # models/api/__init__.py
-$apiInit = @"
-# models/api/__init__.py
-from .auth import UserRegister, UserLogin, UserResponse, LoginResponse
-from .product import ProductBase, ProductCreate, ProductUpdate, ProductResponse, ProductListResponse, ProductDetailResponse
-from .shop import ShopCreate, ShopUpdate, ShopResponse, ShopListResponse, ShopProductCreate, ShopProductResponse
-from .stock import StockBase, StockCreate, StockAdd, StockUpdate, StockResponse, StockLocationResponse, StockSummaryResponse
-from .marketplace import MarketplaceImportRequest, MarketplaceImportJobResponse
-from .stats import StatsResponse, MarketplaceStatsResponse
+# Import statements will be added as you create the individual API model files
+# Example:
+# from .auth import UserRegister, UserLogin, UserResponse, LoginResponse
 
 __all__ = [
-    # Auth models
-    "UserRegister", "UserLogin", "UserResponse", "LoginResponse",
-    # Product models
-    "ProductBase", "ProductCreate", "ProductUpdate", "ProductResponse", 
-    "ProductListResponse", "ProductDetailResponse",
-    # Shop models
-    "ShopCreate", "ShopUpdate", "ShopResponse", "ShopListResponse",
-    "ShopProductCreate", "ShopProductResponse",
-    # Stock models
-    "StockBase", "StockCreate", "StockAdd", "StockUpdate", "StockResponse",
-    "StockLocationResponse", "StockSummaryResponse",
-    # Marketplace models
-    "MarketplaceImportRequest", "MarketplaceImportJobResponse",
-    # Stats models
-    "StatsResponse", "MarketplaceStatsResponse",
+    # Add your API model imports here as you create them
 ]
 "@
+New-PythonFile -Path "models\api\__init__.py" -TempContent $apiInitContent
 
-$apiInit | Out-File -FilePath "models\api\__init__.py" -Encoding UTF8
+# Create models/api/base.py
+Write-Host "  Creating models\api\base.py..." -ForegroundColor Gray
+$apiBaseContent = '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'
+$decodedApi = [System.Text.Encoding]::UTF8.GetString([System.Convert]::FromBase64String($apiBaseContent))
+$decodedApi = $decodedApi.Replace('-----BEGIN PYTHON CODE-----', '').Replace('-----END PYTHON CODE-----', '').Trim()
+$decodedApi | Out-File "models\api\base.py" -Encoding UTF8
 
-# models/api/base.py
-$apiBase = @"
-# models/api/base.py
-from typing import List, TypeVar, Generic
-from pydantic import BaseModel
+Write-Host "✅ Basic model structure created!" -ForegroundColor Green
+Write-Host ""
+Write-Host "🔍 Testing file creation..." -ForegroundColor Yellow
 
-T = TypeVar('T')
+# Check if files were created
+$createdFiles = @(
+    "models\database\__init__.py",
+    "models\database\base.py",
+    "models\database\user.py",
+    "models\api\__init__.py",
+    "models\api\base.py"
+)
 
-class ListResponse(BaseModel, Generic[T]):
-    """Generic list response model"""
-    items: List[T]
-    total: int
-    skip: int
-    limit: int
+foreach ($file in $createdFiles) {
+    if (Test-Path $file) {
+        $size = (Get-Item $file).Length
+        Write-Host "✅ $file ($size bytes)" -ForegroundColor Green
+    } else {
+        Write-Host "❌ $file (missing)" -ForegroundColor Red
+    }
+}
 
-class StatusResponse(BaseModel):
-    """Generic status response"""
-    success: bool
-    message: str
-"@
+Write-Host ""
+Write-Host "🧪 Testing Python imports..." -ForegroundColor Yellow
+try {
+    $pythonTest = 'import sys; sys.path.append("."); from models.database.user import User; print("SUCCESS: Database models import working")'
+    $testResult = python -c $pythonTest 2>&1
+    if ($LASTEXITCODE -eq 0) {
+        Write-Host "✅ Python import test passed!" -ForegroundColor Green
+    } else {
+        Write-Host "⚠️  Python import test failed (may need dependencies)" -ForegroundColor Yellow
+    }
+} catch {
+    Write-Host "⚠️  Python not available for testing" -ForegroundColor Yellow
+}
 
-$apiBase | Out-File -FilePath "models\api\base.py" -Encoding UTF8
-
-Write-Host "✅ Models directory structure created!" -ForegroundColor Green
 Write-Host ""
 Write-Host "📋 Next steps:" -ForegroundColor Cyan
-Write-Host "1. You'll need to manually extract the remaining API model classes from api_models.py:" -ForegroundColor White
-Write-Host "   - Auth models → models\api\auth.py" -ForegroundColor Gray
-Write-Host "   - Product models → models\api\product.py" -ForegroundColor Gray
-Write-Host "   - Shop models → models\api\shop.py" -ForegroundColor Gray
-Write-Host "   - Stock models → models\api\stock.py" -ForegroundColor Gray
-Write-Host "   - Marketplace models → models\api\marketplace.py" -ForegroundColor Gray
-Write-Host "   - Stats models → models\api\stats.py" -ForegroundColor Gray
+Write-Host "1. Complete the remaining database models by copying from your original files:" -ForegroundColor White
+Write-Host "   - models\database\product.py" -ForegroundColor Gray
+Write-Host "   - models\database\shop.py" -ForegroundColor Gray
+Write-Host "   - models\database\stock.py" -ForegroundColor Gray
+Write-Host "   - models\database\marketplace.py" -ForegroundColor Gray
 Write-Host ""
-Write-Host "2. Update imports throughout your application:" -ForegroundColor White
-Write-Host "   Old: from models.database_models import User, Product" -ForegroundColor Gray
-Write-Host "   New: from models.database import User, Product" -ForegroundColor Gray
+Write-Host "2. Extract API model classes from your api_models.py to separate files:" -ForegroundColor White
+Write-Host "   - models\api\auth.py" -ForegroundColor Gray
+Write-Host "   - models\api\product.py" -ForegroundColor Gray
+Write-Host "   - models\api\shop.py" -ForegroundColor Gray
+Write-Host "   - models\api\stock.py" -ForegroundColor Gray
+Write-Host "   - models\api\marketplace.py" -ForegroundColor Gray
+Write-Host "   - models\api\stats.py" -ForegroundColor Gray
 Write-Host ""
-Write-Host "   Old: from models.api_models import UserCreate, ProductResponse" -ForegroundColor Gray
-Write-Host "   New: from models.api import UserRegister, ProductResponse" -ForegroundColor Gray
+Write-Host "3. Update imports throughout your application:" -ForegroundColor White
+Write-Host "   Old: from models.database.user import User" -ForegroundColor Gray
+Write-Host "   New: from models.database.user import User" -ForegroundColor Gray
 Write-Host ""
-Write-Host "3. Test imports after restructure:" -ForegroundColor White
-Write-Host "   python -c \"from models.database import User, Product, Shop\"" -ForegroundColor Yellow
-Write-Host "   python -c \"from models.api import UserRegister, ProductResponse\"" -ForegroundColor Yellow
-Write-Host ""
-Write-Host "4. Files to update (search and replace imports):" -ForegroundColor White
-Write-Host "   - All route files in api/v1/" -ForegroundColor Gray
-Write-Host "   - Service files in app/services/" -ForegroundColor Gray
-Write-Host "   - Test files" -ForegroundColor Gray
-Write-Host "   - Any utility files" -ForegroundColor Gray
-Write-Host ""
-Write-Host "✨ Database models restructure completed!" -ForegroundColor Green
-Write-Host "📚 Original files backed up in models\backup\" -ForegroundColor Green
\ No newline at end of file
+Write-Host "✨ Foundation completed successfully!" -ForegroundColor Green
+Write-Host "📚 Original files backed up in models\backup\" -ForegroundColor Green
diff --git a/restructure-model.md b/restructure-model.md
index 38644f19..1c428106 100644
--- a/restructure-model.md
+++ b/restructure-model.md
@@ -148,11 +148,11 @@ After running the script, update imports throughout your codebase:
 
 ```python
 # Old imports
-from models.database_models import User, Product, Shop
-from models.api_models import UserRegister, ProductResponse
+from models.database.user import User, Product, Shop
+from models.api import UserRegister, ProductResponse
 
 # New imports  
-from models.database import User, Product, Shop
+from models.database.user import User, Product, Shop
 from models.api import UserRegister, ProductResponse
 ```
 
diff --git a/scripts/setup_dev.py b/scripts/setup_dev.py
index a7be6017..e913e234 100644
--- a/scripts/setup_dev.py
+++ b/scripts/setup_dev.py
@@ -45,7 +45,7 @@ import sys
 # Add your project directory to the Python path
 sys.path.append(os.path.dirname(os.path.dirname(__file__)))
 
-from models.database_models import Base
+from models.database import Base
 from config.settings import settings
 
 # Alembic Config object
diff --git a/tests/conftest.py b/tests/conftest.py
index 91c1242d..4c2dd1f0 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -8,8 +8,11 @@ from sqlalchemy.pool import StaticPool
 from app.core.database import Base, get_db
 from main import app
 # Import all models to ensure they're registered with Base metadata
-from models.database_models import (MarketplaceImportJob, Product, Shop,
-                                    ShopProduct, Stock, User)
+from models.database.marketplace import MarketplaceImportJob
+from models.database.product import Product
+from models.database.shop import Shop,ShopProduct
+from models.database.stock import Stock
+from models.database.user import User
 
 # Use in-memory SQLite database for tests
 SQLALCHEMY_TEST_DATABASE_URL = "sqlite:///:memory:"
diff --git a/tests/fixtures/auth_fixtures.py b/tests/fixtures/auth_fixtures.py
index 6a4dfe57..afc339c3 100644
--- a/tests/fixtures/auth_fixtures.py
+++ b/tests/fixtures/auth_fixtures.py
@@ -4,7 +4,7 @@ import uuid
 import pytest
 
 from middleware.auth import AuthManager
-from models.database_models import User
+from models.database.user import User
 
 
 @pytest.fixture(scope="session")
diff --git a/tests/fixtures/marketplace_fixtures.py b/tests/fixtures/marketplace_fixtures.py
index 9aa40720..ffe256be 100644
--- a/tests/fixtures/marketplace_fixtures.py
+++ b/tests/fixtures/marketplace_fixtures.py
@@ -1,7 +1,7 @@
 # tests/fixtures/marketplace_fixtures.py
 import pytest
 
-from models.database_models import MarketplaceImportJob
+from models.database.marketplace import MarketplaceImportJob
 
 
 @pytest.fixture
diff --git a/tests/fixtures/product_fixtures.py b/tests/fixtures/product_fixtures.py
index a9bdb2d4..3efb8600 100644
--- a/tests/fixtures/product_fixtures.py
+++ b/tests/fixtures/product_fixtures.py
@@ -3,7 +3,7 @@ import uuid
 
 import pytest
 
-from models.database_models import Product
+from models.database.product import Product
 
 
 @pytest.fixture
diff --git a/tests/fixtures/shop_fixtures.py b/tests/fixtures/shop_fixtures.py
index 2c06f863..1f69596a 100644
--- a/tests/fixtures/shop_fixtures.py
+++ b/tests/fixtures/shop_fixtures.py
@@ -3,7 +3,8 @@ import uuid
 
 import pytest
 
-from models.database_models import Shop, ShopProduct, Stock
+from models.database.shop import Shop,ShopProduct
+from models.database.stock import Stock
 
 
 @pytest.fixture
diff --git a/tests/integration/api/v1/test_pagination.py b/tests/integration/api/v1/test_pagination.py
index a0cc4207..8e6eb083 100644
--- a/tests/integration/api/v1/test_pagination.py
+++ b/tests/integration/api/v1/test_pagination.py
@@ -1,7 +1,8 @@
 # tests/integration/api/v1/test_pagination.py
 import pytest
 
-from models.database_models import Product, Shop
+from models.database.product import Product
+from models.database.shop import Shop
 
 
 @pytest.mark.integration
diff --git a/tests/integration/api/v1/test_stock_endpoints.py b/tests/integration/api/v1/test_stock_endpoints.py
index 5aa72de3..f355f66c 100644
--- a/tests/integration/api/v1/test_stock_endpoints.py
+++ b/tests/integration/api/v1/test_stock_endpoints.py
@@ -1,7 +1,7 @@
 # tests/test_stock_endpoints.py
 import pytest
 
-from models.database_models import Stock
+from models.database.stock import Stock
 
 
 class TestStockAPI:
diff --git a/tests/performance/test_api_performance.py b/tests/performance/test_api_performance.py
index 5b0aad95..a8ad027e 100644
--- a/tests/performance/test_api_performance.py
+++ b/tests/performance/test_api_performance.py
@@ -3,7 +3,7 @@ import time
 
 import pytest
 
-from models.database_models import Product
+from models.database.product import Product
 
 
 @pytest.mark.performance
diff --git a/tests/unit/models/test_database_models.py b/tests/unit/models/test_database_models.py
index 7a9ba273..d59b9572 100644
--- a/tests/unit/models/test_database_models.py
+++ b/tests/unit/models/test_database_models.py
@@ -1,7 +1,10 @@
 # tests/unit/models/test_database_models.py
 import pytest
 
-from models.database_models import Product, Shop, Stock, User
+from models.database.product import Product
+from models.database.shop import Shop
+from models.database.stock import Stock
+from models.database.user import User
 
 
 @pytest.mark.unit
diff --git a/tests/unit/services/test_admin_service.py b/tests/unit/services/test_admin_service.py
index e73462bf..ed650f5d 100644
--- a/tests/unit/services/test_admin_service.py
+++ b/tests/unit/services/test_admin_service.py
@@ -3,7 +3,8 @@ import pytest
 from fastapi import HTTPException
 
 from app.services.admin_service import AdminService
-from models.database_models import MarketplaceImportJob, Shop
+from models.database.marketplace import MarketplaceImportJob
+from models.database.shop import Shop
 
 
 @pytest.mark.unit
diff --git a/tests/unit/services/test_auth_service.py b/tests/unit/services/test_auth_service.py
index 0421e17e..b9a80c6c 100644
--- a/tests/unit/services/test_auth_service.py
+++ b/tests/unit/services/test_auth_service.py
@@ -3,8 +3,8 @@ import pytest
 from fastapi import HTTPException
 
 from app.services.auth_service import AuthService
-from models.api_models import UserLogin, UserRegister
-from models.database_models import User
+from models.api.auth import UserLogin, UserRegister
+from models.database.user import User
 
 @pytest.mark.unit
 @pytest.mark.auth
diff --git a/tests/unit/services/test_marketplace_service.py b/tests/unit/services/test_marketplace_service.py
index 3391c7cd..e2ba0cde 100644
--- a/tests/unit/services/test_marketplace_service.py
+++ b/tests/unit/services/test_marketplace_service.py
@@ -5,8 +5,10 @@ from datetime import datetime
 import pytest
 
 from app.services.marketplace_service import MarketplaceService
-from models.api_models import MarketplaceImportRequest
-from models.database_models import MarketplaceImportJob, Shop, User
+from models.api.marketplace import MarketplaceImportRequest
+from models.database.marketplace import MarketplaceImportJob
+from models.database.shop import Shop
+from models.database.user import User
 
 @pytest.mark.unit
 @pytest.mark.marketplace
diff --git a/tests/unit/services/test_product_service.py b/tests/unit/services/test_product_service.py
index c4cc706f..ec974d6b 100644
--- a/tests/unit/services/test_product_service.py
+++ b/tests/unit/services/test_product_service.py
@@ -2,8 +2,8 @@
 import pytest
 
 from app.services.product_service import ProductService
-from models.api_models import ProductCreate
-from models.database_models import Product
+from models.api.product import ProductCreate
+from models.database.product import Product
 
 @pytest.mark.unit
 @pytest.mark.products
diff --git a/tests/unit/services/test_shop_service.py b/tests/unit/services/test_shop_service.py
index b890199b..1eb7ee73 100644
--- a/tests/unit/services/test_shop_service.py
+++ b/tests/unit/services/test_shop_service.py
@@ -3,7 +3,7 @@ import pytest
 from fastapi import HTTPException
 
 from app.services.shop_service import ShopService
-from models.api_models import ShopCreate, ShopProductCreate
+from models.api.shop import ShopCreate, ShopProductCreate
 
 @pytest.mark.unit
 @pytest.mark.shops
diff --git a/tests/unit/services/test_stats_service.py b/tests/unit/services/test_stats_service.py
index b6ccead0..6a7eb2a6 100644
--- a/tests/unit/services/test_stats_service.py
+++ b/tests/unit/services/test_stats_service.py
@@ -2,7 +2,8 @@
 import pytest
 
 from app.services.stats_service import StatsService
-from models.database_models import Product, Stock
+from models.database.product import Product
+from models.database.stock import Stock
 
 @pytest.mark.unit
 @pytest.mark.stats
diff --git a/tests/unit/services/test_stock_service.py b/tests/unit/services/test_stock_service.py
index 7bf5c5e3..8199f682 100644
--- a/tests/unit/services/test_stock_service.py
+++ b/tests/unit/services/test_stock_service.py
@@ -4,8 +4,9 @@ import uuid
 import pytest
 
 from app.services.stock_service import StockService
-from models.api_models import StockAdd, StockCreate, StockUpdate
-from models.database_models import Product, Stock
+from models.api.stock import StockAdd, StockCreate, StockUpdate
+from models.database.product import Product
+from models.database.stock import Stock
 
 @pytest.mark.unit
 @pytest.mark.stock
diff --git a/tests/unit/utils/test_csv_processor.py b/tests/unit/utils/test_csv_processor.py
index faf64c83..98ba2806 100644
--- a/tests/unit/utils/test_csv_processor.py
+++ b/tests/unit/utils/test_csv_processor.py
@@ -83,7 +83,7 @@ class TestCSVProcessor:
         mock_get.return_value = mock_response
 
         with pytest.raises(Exception):
-            self.processor._download_csv("http://example.com/nonexistent.csv")
+            self.processor.download_csv("http://example.com/nonexistent.csv")
 
     def test_parse_csv_content(self):
         """Test CSV content parsing"""
diff --git a/tests_restructure.md b/tests_restructure.md
index 27edbc50..ca9c557a 100644
--- a/tests_restructure.md
+++ b/tests_restructure.md
@@ -116,7 +116,7 @@ tests/
 ```python
 # tests/fixtures/auth_fixtures.py
 import pytest
-from models.database import User
+from models.database.user import User
 from utils.auth import create_access_token
 
 @pytest.fixture
diff --git a/updated_readme_marketplace.md b/updated_readme_marketplace.md
index 89c91d52..84d90013 100644
--- a/updated_readme_marketplace.md
+++ b/updated_readme_marketplace.md
@@ -603,7 +603,7 @@ volumes:
 
 ```python
 # Migrate existing products to demo shop
-from models.database_models import Product, Shop, ShopProduct
+from models.database import Product, Shop, ShopProduct
 from sqlalchemy.orm import Session
 
 def migrate_to_shops(db: Session):
diff --git a/utils/csv_processor.py b/utils/csv_processor.py
index 3c249382..93b21ddb 100644
--- a/utils/csv_processor.py
+++ b/utils/csv_processor.py
@@ -17,7 +17,7 @@ import requests
 from sqlalchemy import literal
 from sqlalchemy.orm import Session
 
-from models.database_models import Product
+from models.database.product import Product
 
 logger = logging.getLogger(__name__)