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Customers tend to make snap judgements about whether they can trust your company by looking at your site, so it's important to give the right first impression.
As many people still have concerns about shopping online, your website needs to appear as credible and trustworthy as possible.
Here are some tips:

This site, by contrast, has a more professional, clean design and is much more credible as a result.
Your credibility will be further enhanced if you are prepared to showcase negative as well as positive reviews, as with Amazon in the example above.
This will show the customer that you are open and honest and the bad reviews will have the effect of making positive reviews more believable.
Show server security/trust logos
Having third party certification of a site, such as VeriSign, ISIS or HackerSafe, is usually persuasive evidence that the site can be trusted. Online shoppers are used to seeing these symbols on other sites and will wonder why your site doesn't have them.
You should display more than just the logo though, and ensure that it links to further information about the validity of the certificate.
Don't give customers any surprises
Be upfront about any extra charges for accessories, or the delivery costs before they reach the checkout. Finding out at such a late stage will infuriate many customers.
Also, if you need to take any personal details, explain to customers why these are necessary.
Related research:
Online Retail User Experience Benchmarks 2006
Related stories:
Trust in online shopping improving - study
Internet crime feared more than burglary in the UK
Kaya, Optimised Media
Internet Marketing