The scheme was launched three-and-a-half years ago and has attracted more than 8,000 applications from companies trading online.
However, the Consumers' Association, which ran the scheme under its Which? brand, says that it is too expensive to go on running Which? Web Trader and that it needs to use its resources in the most efficient way possible.
Paul Kitchen, head of online at the Consumers' Association, said: "There is still a need to increase consumers' confidence about shopping online and we think it is now up to business and government to set up an alternative scheme to build on the successful work of Which? Web Trader."
During its lifetime, the scheme gave its stamp of approval to more than 2,700 traders, ranging from to , where you can buy DNA in a tin.
The scheme also resolved more than 2,000 disputes on behalf of consumers. Web retailers have been informed that the scheme is finished and the logo has been withdrawn.
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