diff --git a/shop/lib/actions/setup.ts b/shop/lib/actions/setup.ts
index dd35b04..045e23f 100644
--- a/shop/lib/actions/setup.ts
+++ b/shop/lib/actions/setup.ts
@@ -26,12 +26,28 @@ export type SmtpSetupData = {
 export async function isSetupNeeded(): Promise<boolean> {
   try {
     const admin = createAdminClient()
-    const { count, error } = await admin
+
+    // 1. Check if any user exists in Supabase Auth
+    const { data: authData, error: authError } = await admin.auth.admin.listUsers({
+      perPage: 1
+    })
+
+    if (authError) {
+      console.error('Error checking auth users list:', authError)
+      return false
+    }
+
+    if (authData.users.length > 0) {
+      return false
+    }
+
+    // 2. Check if any user exists in public.users table
+    const { count, error: dbError } = await admin
       .from('users')
       .select('*', { count: 'exact', head: true })
 
-    if (error) {
-      console.error('Error checking setup status:', error)
+    if (dbError) {
+      console.error('Error checking users table status:', dbError)
       return false
     }