The internet has given shoppers a real boost in the number of choices available to them. Unfortunately, it has also given the less scrupulous retailer more opportunities to scam innocent customers. So how should you select an online business from whom to buy your goods and services?

The simplest way to choose a retailer you know you can rely on is to only go for well-established businesses who have a bricks-and-mortar contingent with which you are familiar. All high street chains have websites: clothes shops, supermarkets, electrical shops, department stores, music shops and so on. However, these big-name businesses often charge a premium, partly because of the reliability and integrity their brand affords. You may end up being charged more than you need to pay if you shop online with one of these businesses.

Another option is to opt only for well-known online brands. Amazon.com and Play.com are good examples. The sheer amount of publicity focused on companies like these means that, like bricks-and-mortar businesses, they are forced to take on a high level of responsibility for their actions. They are often cheaper than their high street equivalents, as well.

But again, these large companies often charge more than other online businesses, and often don't offer niche market goods. Also, you may well want a local business, as your needs may not be as well served by a larger company – especially if you're looking for someone to provide a service, such as a web designer or plumber.

Generally speaking, if you are looking for a service online, such as a building contractor, you are likely to meet representatives of the company before you hand over any cash. If this is the case, you can afford to let one or two less convincing businesses slip into your shortlist, and discard them if need be when you have reviewed your options. However, if you are making a purchase over the web, you should make sure you can rely on the integrity of the business.

A good way to start looking for a reliable local business online is to try a directory, such as Yell, the UK online equivalent of the Yellow Pages, or DMOZ, the open directory project. These directories check out the websites of those who submit to advertise on their sites, so they do some of the groundwork for you.

Once you've found a business' website, there are a few clues to look out for which can give you a sense of how trustworthy that business is. A good way to start is to assess the quality of the website itself. Is it an attractive, professional design?

Check that everything you would expect of an established business is featured on the website. There should be an "About" page, a site map (for larger sites), a "Contact Us" page, and if there are any forms on the site, a privacy policy.

Check to see if there is a landline telephone number listed on the contact page, as well as a physical address (not a PO Box). Try calling the telephone number and making an enquiry. This can give you an idea of whether you are dealing with a home business or an office-based one, and what sort of standard of customer service you can expect. You may even want to visit the address if you want to check up still further.

Also check that the site has its own domain name (rather than a free hosting one) and that it uses personal email addresses which are the same as this domain name, as opposed to free ones such as Yahoo! Mail or Hotmail.

Try to ascertain how large a staff the company has. Generally speaking, the more people they employ, the better. Have a look at their "About Us" page. Many small businesses will post photographs and short biographies of employees.

Look out for seals of security next to any online forms. Also, if there is any ecommerce (direct buying or selling) functionality on the site, check what sorts of payment methods are accepted. If they only take cash and cheques, that's quite suspicious! An established retailer should be able to take all major credit cards, and possibly also PayPal or Nochex. See if you can place an order over the telephone.

Have a look around online for any customer reviews, and see if the business' own website features any testimonials from previous customers.

Before making any purchases, check the refund policy and see if the company offers any good guarantees. "No questions asked" money back guarantees are worth hunting out.

Shopping online can save you a lot of money and be much more convenient than wandering around the high-street. Keep your wits about you and watch out for businesses which look less than trustworthy, and online shopping can be a pain-free experience.

By Helena Henderson