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+# Unified Order Schema Implementation
+
+## Overview
+
+This document describes the unified order schema that consolidates all order types (direct and marketplace) into a single `orders` table with snapshotted customer and address data.
+
+## Design Decision: Option B - Single Unified Table
+
+After analyzing the gap between internal orders and Letzshop orders, we chose **Option B: Full Import to Order Table** with the following key principles:
+
+1. **Single `orders` table** for all channels (direct, letzshop, future marketplaces)
+2. **Customer/address snapshots** preserved at order time (not just FK references)
+3. **Products must exist** in catalog - GTIN lookup errors trigger investigation
+4. **Inactive customers** created for marketplace imports until they register on storefront
+5. **No separate `letzshop_orders` table** - eliminates sync issues
+
+## Schema Design
+
+### Order Table
+
+The `orders` table now includes:
+
+```
+orders
+├── Identity
+│   ├── id (PK)
+│   ├── vendor_id (FK → vendors)
+│   ├── customer_id (FK → customers)
+│   └── order_number (unique)
+│
+├── Channel/Source
+│   ├── channel (direct | letzshop)
+│   ├── external_order_id
+│   ├── external_shipment_id
+│   ├── external_order_number
+│   └── external_data (JSON - raw marketplace data)
+│
+├── Status
+│   └── status (pending | processing | shipped | delivered | cancelled | refunded)
+│
+├── Financials
+│   ├── subtotal (nullable for marketplace)
+│   ├── tax_amount
+│   ├── shipping_amount
+│   ├── discount_amount
+│   ├── total_amount
+│   └── currency
+│
+├── Customer Snapshot
+│   ├── customer_first_name
+│   ├── customer_last_name
+│   ├── customer_email
+│   ├── customer_phone
+│   └── customer_locale
+│
+├── Shipping Address Snapshot
+│   ├── ship_first_name
+│   ├── ship_last_name
+│   ├── ship_company
+│   ├── ship_address_line_1
+│   ├── ship_address_line_2
+│   ├── ship_city
+│   ├── ship_postal_code
+│   └── ship_country_iso
+│
+├── Billing Address Snapshot
+│   ├── bill_first_name
+│   ├── bill_last_name
+│   ├── bill_company
+│   ├── bill_address_line_1
+│   ├── bill_address_line_2
+│   ├── bill_city
+│   ├── bill_postal_code
+│   └── bill_country_iso
+│
+├── Tracking
+│   ├── shipping_method
+│   ├── tracking_number
+│   └── tracking_provider
+│
+├── Notes
+│   ├── customer_notes
+│   └── internal_notes
+│
+└── Timestamps
+    ├── order_date (when customer placed order)
+    ├── confirmed_at
+    ├── shipped_at
+    ├── delivered_at
+    ├── cancelled_at
+    ├── created_at
+    └── updated_at
+```
+
+### OrderItem Table
+
+The `order_items` table includes:
+
+```
+order_items
+├── Identity
+│   ├── id (PK)
+│   ├── order_id (FK → orders)
+│   └── product_id (FK → products, NOT NULL)
+│
+├── Product Snapshot
+│   ├── product_name
+│   ├── product_sku
+│   ├── gtin
+│   └── gtin_type (ean13, upc, isbn, etc.)
+│
+├── Pricing
+│   ├── quantity
+│   ├── unit_price
+│   └── total_price
+│
+├── External References
+│   ├── external_item_id (Letzshop inventory unit ID)
+│   └── external_variant_id
+│
+├── Item State (marketplace confirmation)
+│   └── item_state (confirmed_available | confirmed_unavailable)
+│
+└── Inventory
+    ├── inventory_reserved
+    └── inventory_fulfilled
+```
+
+## Status Mapping
+
+| Letzshop State | Order Status | Description |
+|----------------|--------------|-------------|
+| `unconfirmed` | `pending` | Order received, awaiting confirmation |
+| `confirmed` | `processing` | Items confirmed, being prepared |
+| `confirmed` + tracking | `shipped` | Shipped with tracking info |
+| `declined` | `cancelled` | All items declined |
+
+## Customer Handling
+
+When importing marketplace orders:
+
+1. Look up customer by `(vendor_id, email)`
+2. If not found, create with `is_active=False`
+3. Customer becomes active when they register on storefront
+4. Customer info is always snapshotted in order (regardless of customer record)
+
+This ensures:
+- Customer history is preserved even if customer info changes
+- Marketplace customers can later claim their order history
+- No data loss if customer record is modified
+
+## Shipping Workflows
+
+### Scenario 1: Letzshop Auto-Shipping
+
+When using Letzshop's shipping service:
+
+1. Order confirmed → `status = processing`
+2. Letzshop auto-creates shipment with their carrier
+3. Operator picks & packs
+4. Operator clicks "Retrieve Shipping Info"
+5. App fetches tracking from Letzshop API
+6. Order updated → `status = shipped`
+
+### Scenario 2: Vendor Own Shipping
+
+When vendor uses their own carrier:
+
+1. Order confirmed → `status = processing`
+2. Operator picks & packs with own carrier
+3. Operator enters tracking info in app
+4. App sends tracking to Letzshop API
+5. Order updated → `status = shipped`
+
+## Removed: LetzshopOrder Table
+
+The `letzshop_orders` table has been removed. All data now goes directly into the unified `orders` table with `channel = 'letzshop'`.
+
+### Migration of Existing References
+
+- `LetzshopFulfillmentQueue.letzshop_order_id` → `order_id` (FK to `orders`)
+- `LetzshopSyncLog` - unchanged (no order reference)
+- `LetzshopHistoricalImportJob` - unchanged (no order reference)
+
+## Files Modified
+
+| File | Changes |
+|------|---------|
+| `models/database/order.py` | Complete rewrite with snapshots |
+| `models/database/letzshop.py` | Removed `LetzshopOrder`, updated `LetzshopFulfillmentQueue` |
+| `models/schema/order.py` | Updated schemas for new structure |
+| `app/services/order_service.py` | Unified service with `create_letzshop_order()` |
+| `alembic/versions/c1d2e3f4a5b6_unified_order_schema.py` | Migration |
+
+## API Endpoints (To Be Updated)
+
+The following endpoints need updates to use the unified model:
+
+| Endpoint | Changes Needed |
+|----------|----------------|
+| `GET /admin/orders` | Use unified Order model |
+| `GET /admin/orders/{id}` | Return based on channel |
+| `POST /admin/letzshop/orders/sync` | Use `order_service.create_letzshop_order()` |
+| `POST /admin/letzshop/orders/{id}/confirm` | Use `order_service.update_item_state()` |
+| `POST /admin/letzshop/orders/{id}/tracking` | Use `order_service.set_order_tracking()` |
+
+## Order Number Format
+
+| Channel | Format | Example |
+|---------|--------|---------|
+| Direct | `ORD-{vendor_id}-{date}-{random}` | `ORD-1-20251219-A1B2C3` |
+| Letzshop | `LS-{vendor_id}-{letzshop_order_number}` | `LS-1-ORD-123456` |
+
+## Error Handling
+
+### Product Not Found by GTIN
+
+When importing a Letzshop order, if a product cannot be found by its GTIN:
+
+```python
+raise ValidationException(
+    f"Product not found for GTIN {gtin}. "
+    f"Please ensure the product catalog is in sync."
+)
+```
+
+This is intentional - the Letzshop catalog is sourced from the vendor catalog, so missing products indicate a sync issue that must be investigated.
+
+## Future Considerations
+
+### Performance at Scale
+
+As the orders table grows, consider:
+
+1. **Partitioning** by `order_date` or `vendor_id`
+2. **Archiving** old orders to separate tables
+3. **Read replicas** for reporting queries
+4. **Materialized views** for dashboard statistics
+
+### Additional Marketplaces
+
+The schema supports additional channels:
+
+```python
+channel = Column(String(50))  # direct, letzshop, amazon, ebay, etc.
+```
+
+Each marketplace would use:
+- `external_order_id` - Marketplace order ID
+- `external_shipment_id` - Marketplace shipment ID
+- `external_order_number` - Display order number
+- `external_data` - Raw marketplace data (JSON)
+
+## Implementation Status
+
+- [x] Order model with snapshots
+- [x] OrderItem model with GTIN fields
+- [x] LetzshopFulfillmentQueue updated
+- [x] LetzshopOrder removed
+- [x] Database migration created
+- [x] Order schemas updated
+- [x] Unified order service created
+- [ ] Letzshop order service updated
+- [ ] API endpoints updated
+- [ ] Frontend updated