Does 'Cities' deserve a separate table?
When you get into it -- really get into it -- storing componentized address data is an extremely complicated problem because of all the disparate and varied systems in use globally.

I think whatever you develop needs to be balanced between flexibility, and storing only what your business needs to store.



The biggest piece of the puzzle here is to move all address-related fields out of the Customers table -- addresses are entities unto themselves.

The space cost may not be relevant in a very small system (maybe), but this is more about a technical debt issue. If you need to start adding more address-related fields, you would have to keep adding more and more of them to the Customers table. Sooner or later, you'll realize that this is an inflexible design -- if you need to use multiple addresses for a given customer (billing &amp; shipping addresses being the classic example), now you're in a world of hurt without normalizing, as you can't reuse the existing structure to store the required data.

At an absolute minimum, create a new table Addresses, and then reference address_id from Customers. If you want to go the multiple address route eventually, even doing just this step (as opposed to sticking with the current design) will save a massive headache later.

The address line could go in either the Addresses table directly for simplicity, or in a separate Address_Lines table to handle multiple lines. (The latter is usually preferred.)

After that, a general minimum for being able to slice and dice your data in a meaningful way is to construct normalized Countries, Regions (aka provinces/territories/etc.), and Cities tables, with only the latter appearing as a field in the Addresses table. This lets you ask business questions like "how many products did we sell in city X?" and "how many products did we sell in region Y?". (Note: depending on where you operate, what data you have, and how the data will be sliced, you may require a 4th table in there between Regions and Cities.)

If you need to get more granular ("how many products did we sell to customers on street X?"), then you'll have to start componentizing the address lines themselves, which is the really difficult part. Usually, though, a business won't ask this kind of question. Given that I don't even see a postal code field, I'm guessing this is not something you care about.