InkTears is a great website which brings together writers and readers online. Their mission statement is to "encourage more people to discover the pleasure of the short story" - a sentiment I most certainly support! Every month they email a short story to their membership, also publishing them on their site.
They also run a yearly short story competition - a fiercely contested affair which attracts hundreds of entries.
I'm stunned to say that my short story "True Colours" has been awarded runner up prize in their 2012 competition!
It's due to be published in May 2013. Get my story, and those of all the other competition winners, by signing up for free here.