I recommend this town as a day trip. But if you do stay over I stayed at Villa Fiorentino. This Villa a beautiful family owned villa with a pool. The views were amazing, the rooms were decent sized, and the family feel is something you couldn't put a price on. Additionally, the hike from town up to the villa is rigorous enough that you can eat whatever you want when you are there (which was perfect for my big day on a pasta diet)!
Shopping - there is a great shoe store that has loafers every color you could imagine, as well as several ceramic shops and other local artwork.
Eating - several options here but I will list a few at different price points.
1. Max's - stuffed calamari is amazing! As well as any pasta or dessert.
2. Buca di Bacco - great wild boar and panna cotta, sit on the patio and enjoy the views
3. Next2 - I haven't been here but heard good things, I want to try it next time I visit.
Others - beach is typical euro pebble but decent sized.