Are random online stores safe?

Froogle tells me I can spend anywhere from $60 to $923 on an iPod nano. Is there any reason I should not buy from an online store selling iPods for $60? I have no concerns about buying from, say, eBay, but am somewhat more nervous about buying from a website I’ve never heard of, like http://www.consumerdepot.com.

(For bonus points: is there any good reason I should opt for a more recent generation of nano, or can I cheap out and get an older version?)