China's red-hot e-commerce sector lost some steam in the first quarter due to lackluster B2B activities and online shopping.

The e-commerce transaction volume in the January-to-March period amounted to 1.5 trillion yuan ($230.8 billion), growing a modest 7.6 percent over the October-to-December period of 2010, said the Shanghai-based iResearch Consulting Group.

"The first quarter has always been a slack season for B2B activities and online shopping," said iResearch in a recent report.

The online shopping transactions climbed 5.5 percent over the previous quarter to reach 170 billion yuan ($26.2 billion), compared with the 41.5-percent growth in the October-to-December period of 2010.

Meanwhile, China's B2B platforms raked in combined revenue of 2.93 billion yuan ($450.8 million), up 7.7 percent from a quarter earlier.

"Smaller enterprises become a driving force of the B2B sector, as they have increasingly recognized the importance of online markets," said the report, "In addition, B2B platforms have handed out generous incentives to lure smaller clients."

The third-party payment industry slowed down as well, with its transaction value edging up 3.2 percent to 365 billion yuan ($37 billion).

The government last year ordered non-bank payment service providers to apply for a business license. The policy is expected to create a healthier business environment and steer the sector on a steady path toward growth, said the report.