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It cancelled orders made at the wrong price and issued the statement: "As the conditions of use clearly state, there is no contract between Amazon.co.uk and the customer for an item until Amazon.co.uk accepts the customer order by e-mail confirming that it has dispatched the item."

Do errors do more harm to online brands? What can they do?

NIALL COOK - director, Netcoms, Hill & Knowlton (UK)

I don't buy the online/offline distinction. Online brands exist offline and vice versa. Companies that realise this will be better at managing their brand reputations. E-tailers are more easily damaged online due to the time reduction between knowing about an issue and being able to act on it.

Benchmarking across audiences and sectors can help firms understand what audiences expect - the importance of user experience on brand reputation should not be underestimated. Integrated monitoring of online and offline sources is essential too. Any response should be proportionate and consistent.

A crisis is a crisis, off- or online, so the same principles apply, although the methods of communication may differ. E-tailers, like their offline counterparts, need trained spokespeople and crisis plans, which are sympathetic to internet audiences. In the same way people share the initial error, they will also share any direct response, exposing it to many more than those affected.

JAN MARZEC - solicitor, media intellectual property & commercial team, Wedlake Bell

A business that retails goods online is more at risk of getting into Amazon.co.uk's situation than a high-street store. Where you operate an automated ordering system, large numbers of orders can be placed before anyone realises something is wrong.

Online retailers need to be aware of the raft of legislation governing online sales, regulating returns and the information that must be given to customers when they place orders. On the whole, these requirements don't affect high-street transactions.

Have well-drafted terms and conditions and make sure they are drawn to customers' attention before they order.

PAUL DAWSON - head of media services, Conchango

This was a massive opportunity to gain goodwill that Amazon.co.uk should have grabbed. You couldn't pay for an online campaign that got that many people signed up to your site in an hour.

Online retailers need to ensure they've got checks and balances in place to protect against error. To get prices on to a site, someone somewhere has to type them in. They should be trustworthy and firms need to have someone auditing them.

When pricing errors occur, it's usually a mistake like a decimal point out of place or it's someone in the firm. Fraud is more common than people think. Companies can get in an external firm to audit IT security and the site management process.

MICHAEL SMITH - chief executive, Firebox.com

Negative information about an online brand can certainly spread quicker because the 'evidence' will usually be available on the web site and discussion boards, and emails flow much faster than traditional word of mouth.

I think honesty on the part of companies is the single most important element. If an error is made, they should hold their hands up, do what is necessary to put the situation right and then move on swiftly. It is very easy for little things to become big issues extremely quickly.

Software can only go so far in preventing error. Wherever possible, companies should identify any potential problem areas before anything goes wrong.