Temu and Pricepally are case studies of entrants in the Nigerian e-commerce market who are making waves in the battle for a $9.54 billion market share in 2025.

Nigeria’s e-commerce market is estimated at $9.54 billion in 2025 and is expected to hit $16.68 billion by 2030, according to Mordor Intelligence, a market intelligence and advisory firm.

“E-commerce penetration in Nigeria will expand in 2025 and beyond and they are reasons driving it which include technology, digitisation of platforms, telecommunication infrastructure is making it possible for them to have a stronger presence,” Uzo Uchenna, a professor of marketing at Lagos Business School said.

He stated that consumers’ preferences and tastes are evolving as they shop for products.

“Principally and Temu has a phenomenon emerging which proves that Nigerian consumers are shopping locally and internationally, interchangeably,” Uzo said, stating that consumers are choosing to buy internationally where there is a price advantage while sourcing locally for other kinds of products.

It creates an opportunity for competition, collaboration, and value-added services, according to him.

He, however, stated that consumer preferences will depend alot on how consumer goods firms deliver on their brand promise. Nigerian consumers are very demanding and they can easily spot poor service delivery.

Consumers’ preference for convenience has given a boom to the Nigerian e-commerce market.

Africans are gradually embracing the convenience of online shopping. However, this trend is still in its early stages in Africa, compared with more established markets such as Asia, Europe, and the United States.

As established that online shopping is gradually being embraced in Africa, online shopping is booming across Africa, with the digital marketplace estimated to grow to $75 billion by 2025.

Kayode Eseyin, lead consumer goods and Agriculture analyst at Cardinalstone said the Nigerian e-commerce just like the consumer goods sector has been underwhelming of late due to the purchasing power issues Nigerians have faced in recent memory.

“If anything, several e-commerce platforms have exited or scaled down operations in Nigeria, including Deal Dey, Efritin, OLX, and Jumia Food, highlighting challenges in the Nigerian e-commerce market,” he said.

Eseyin stated that the outlook for Nigerian e-commerce is starting to improve, it might be a while before we start to see some more new entrants.

Projections by the McKinsey Global Institute suggest that by 2025, e-commerce could account for 10 percent of all retail sales in Africa’s largest economies: Nigeria, South Africa and Egypt.

Read also: Firm set to compete in Nigeria’s multi-billion growing e-commerce market

With the entry of Temu into the Nigerian market after it launched in South Africa in early 2024, it hit consumers with an advertisement on social media that signals the company’s entry into Nigeria with goods on Temu available in the local currency – Naira, and available for delivery to Nigerian addresses.

Temu operates a unique model: a combination of C2M (consumer to manufacturing) and D2C (direct to consumer) models. Cheap deals has been Temu’s main strategy from the onset. In fact they came into the market with the slogan: “shop like a billionaire”.

Temu is an online shopping app that has quickly gained traction worldwide. Originating from the parent company PDD Holdings, which also owns the popular Chinese e-commerce platform Pinduoduo, Temu focuses on providing low prices across various product categories.

It was stated that Temu aims to redefine online shopping in Nigeria, while challenging established players like Jumia, Konga, etc.

However, some reviews from temu.com Reviews reveal both positive and negative reports.

“I have made many purchases from Temu and have had nothing but good results. I have had two issues where I had to get a refund. They were prompt in getting my refund to me. I have also gotten my six free gifts and just received seven more and working on my 8 free. That are being sent out one a day for 8 days,” Diane Bishop, a reviewer said.

Patricia Jaimr, a verified reviewer said, “I don’t recommend any of your stuff at Temu! I have ordered twice and all products had bad quality and they come in smaller sizes as if it was for kids. Also, the packaging is bad, open packages and both times I’ve received them completely just thrown in, like trash, with no protection.

“The products from them, don’t look anything like what she is showing on their app or any videos. I’ve had to return everything and I will never buy again!,” Jaimr commented.

Semafor, a global news platform, said in a report that Temu, a Chinese online retailer, has become the most downloaded app in Nigeria on both the Android and Apple app stores in just a few weeks since ads started promoting its availability in the country.

Read also: Setting sails for the New Year: E-Commerce trends to watch in 2025

Pricepally is also making a difference, bringing fresh, affordable food directly from farmers to one’s doorstep.

“We draw inspiration from the unwavering dedication of farmers across African countries who work tirelessly to ensure food availability. Pricepally was built to empower these farmers, enabling them to reduce food waste, improve their earnings, and farm sustainably with the environment in mind. Our mission is to restore power to the hands of the farmer,” it said in a statement.

“This year will make it 3 years that I have been using pricepally. Perfect app and business for people like me who hate going to the market. Great and affordable prices, neat and trustworthy products, amazing customer service, swift and on schedule delivery,” Thelma Bayoko, gave a review on play store.

“Non-static prices, I mean mile 12 market prices! I shop from the comfort of my home and get fresh and healthy food products… when an item is out of stock and you have paid, you get a swift refund. They deserve more than 5 star!,” Bayoko said.

Esther Joseph-Owumi gave a review on Trustindex dated January 28, 2025, “Prompt delivery, fresh vegetables, polite dispatch rider, good customer service.”

Another customer named, Omotoyosi Adegbite said, “Terrible experience, they charge me for items that is not in stock.”

Principally responded saying, “We’re truly sorry for your experience and understand how frustrating this must have been. At Pricepally, we never charge for items that are not delivered—it’s against our values to cheat customers.

“What likely occurred is a supply chain issue, which, though outside our control, we take full responsibility for. In such cases, we always offer a full refund. If you haven’t received yours yet, please notify us at [email protected],” they said.

In November 2019, Pricepally was founded with a daring mission which is to transform how families and businesses access fresh food and groceries.

“We envisioned a revolutionary system where demand and supply seamlessly intertwine, benefiting consumers, farmers, wholesalers, and brands alike,” it said.

Read also: Sanwo-Olu hails Jumia’s giant strides in growing Nigeria’s e-commerce sector

Experts are of the notion that though the e-commerce sector holds significant potential in Africa, it faces challenges related to cultural and logistical factors.

Jumia is referred to as Africa’s largest online marketplace is Jumia, an e-commerce company that which attracts 23 million monthly visits. It is followed by the online shopping platform Takealot.com, which has 10 million monthly visits, 96 percent of which are from South Africa, the country in which it is based.

Jumia, which is listed on the New York Stock Exchange, attracts sales from Nigeria, Egypt, Morocco, Kenya and South Africa, among other countries.

The fact is that Nigeria’s growing internet access and smartphone usage spurred the adoption of digital payment solutions, making it easier for Nigerians to make online transactions.

This, in turn, fueled the growth of e-commerce business, as people now have convenient and secure ways to purchase goods and services and pay online.

As a result, online shopping has gained popularity, with numerous e-commerce platforms lining up to fill that niche. This is encouraged by payments technology and solutions company Worldpay’s projection that by 2026, 13 percent of Nigeria’s total sales will be transacted online, facilitated by electronic systems.

Some of the notable e-commerce platforms now eyeing Nigeria’s $9.54 billion e-commerce market which, according to market intelligence and advisory firm Mordor Intelligence, is expected to reach $16.68 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 11.82 per cent, are Jiji, Jumia, Konga, and Cars45, among others.