Figures from the Interactive Media In Retail Group (IMRG) show UK shoppers spent £4.3bn online in January, up just 5% year on year.
Monthly growth dropped 22% from December 2009 to January 2010 as indebted consumers began to rein in their festive spending.
The biggest monthly slowdown since records began was attributed to the combination of strong online sales in December and tough year on year comparisons with January 2008, when heavy discounting was prevalent as e-retailers' attempted to shift stock left over from the first recession-ravaged Christmas.
The latest monthly slow down after December was, according to the IMRG, "in-line" with usual seasonal trends, although "greater than in recent years".
Tina Spooner, director of information, IMRG, said: "The weaker yearly growth in the UK e-retail market during January follows a strong December when online retailers were clearly well prepared for the festive season, indeed December 26th and 27th saw the highest sales of all of 2009.
"Less retailer discounting due to well planned stock levels and the increase in VAT equally appear to have had an impact on the online retail sector during January."
After a strong performance over Christmas, the monthly decline was strongest in the beers, wines and spirits sector, where consumers spent 58% less than in December.
The clothing, footwear and accessories sector, which consistently drove the total market throughout 2009, also saw strong yearly growth of 10% in January 2010.
The dip in online sales happened despite the country's .
But the trading slow down was not industry-wide, with retailer John Lewis reporting "another strong month", with sales up 46% on last year. Fashion was a notably strong performer for the retailer, up more than 100% year on year.
Jonathon Brown, head of online selling at John Lewis, said: "It is also worth noting that the site also received its 100 millionth visitor for the year, highlighting the demand for online services from John Lewis and how the retailer is successfully driving its multi-channel strategy forward, in a way that our customers appreciate."
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