I am professional e-commerce developer, so can tell you that it is more than normal. Rarely an online-store has visitors to order conversion bigger than some 1% to 3% (though it certainly greatly depends on the type of goods). Additionally big part of the hits you see in your stats are no real visitors, but just different kinds of bots (i.e. search engine spidering agents).
If you are looking for ways to attract more customers, first you have to forget that you are the owner and try looking at your store with their eyes and thinking like them - if you searched some goods to buy, why would you decide to buy in this store over others? Do you have better prices? Better customer support? Perfect product comparisons, reviews and tests? Cheaper and faster shipping and logistic? Warranties and shipping insurances better than others? Excellent consultancy or customer support? Are you specialized in certain type of diving equipment or a brand name that one cannot find easily elsewhere? Do you have better know-how than others in certain areas? Is the reputation of the store highly valued in the community? Are you well known and active in the community? Do you focus on local sales or on another specific group of customers? Are you well ranked in search engines?
If at least some of that applies to you, it should be told very clearly to the visitor - push the advantage as an argument to buy with you. If nothing of that is true, than you cannot be surprised if the sales do not soar. People will either take the cheapest offer they find (and it is not difficult to compare prices of online stores), or simply go with their favourite store, or with a huge brand name store of a great reputation.
That told, your store indeed has couple of technical problems that may turn away a good deal of visitors. First of all, the store will reject anyone who's browser does not accept unverified cookies - you have no P3P (Privacy Policies) code in the HTTP headers, so anyone using MSIE6 or newer with default settings, will be unable to purchase in your store, unless he understands the problem and forces the browser to accept cookies from your server. Definitely a very bad thing!
The store is not really well designed - it is not attractive graphically, it has a lot of ergonomic (usability) problems, and technically it is also far to be perfect or comparable to brand name stores. Sure, I know that getting a well looking, ergonomic, and technically perfect store costs a fortune and a lot of time, but still even with low budget, there are things that can be improved rather easily. So for example fixing the P3P issue is extremely important (though having a cart version that does not need any cookies would be even better).
Speaking about the layout: sorry to tell it, but it looks very amateurish. Everyone can see it that it was not made by a professional, but rather by some cousin who learned some basic HTML in the college. The first thing I would change is replacing the ugly giant top header that takes the full screen when you open it in any resolution smaller that 1240x1024. The top menu makes no sense - it is split in two parts - the clumsy and slowly loading graphic buttons over the thick red bar (with no purpose to be there), and then another miniature almost invisible (although important) cart menu below in the black bar - that is very user unfriendly. Although I use to see dozens of such stores daily, and know where to look, it took me good 20 seconds before I localized the checkout link when I wanted to make a test purchase (for some reason there was no checkout button on the page I used, although I see now that there is one on other pages). Normal visitor would already click the Back button. The checkout menu choice should be very well visible.
Generally, there are too many menu options, and there is too much blind space in them and around, so it is not easy to navigate or to see what there is in the store. Try making it more compact, and use subcategories. Usability guides tell that it is optimal to keep up to 7 options in a menu. Well, sometimes it is not practical or possible, but putting everything unimportant away from the principal view, or grouping differently, is usually advisable.
The next important issue is that the website is not at all optimized for search engines (no titles, description, keywords, text, no content that could be indexed b search engines), so you probably do not rank very well in Google or elsewhere. And that what I mentioned is only a small part of getting better ranks in SE results.
One way to attract and keep customers is offering also some content that brings them back to your website even if they do not look for buying anything. The DB forum is the best example. Sure, you will probably not manage to get as huge visitor and member base as DB, but if you write and publish diverse reviews, stories, test results, or add other content that can be interesting for at least some specific community, you will also very likely increase your sales. And yes, I saw the five undated articles you have on your website - but you certainly feel that it is barely something that would bring any visitor back again.
Well, I could continue, but would need to type for long time, and would need to spend more time on analyzing the store. I would definitely advise subscribing to the some mailing list or forum of store owners, where you can discuss e-commerce related problems and get some useful tips. The best is starting with the forum of the cart software you use. Then there are many general websites dedicated to store owners (for example
http://www.merchant911.org/). Also forums of important vendors of e-commerce may be of great help - for example you can find plenty of useful tips at [ame="http://extranet.miva.com/forums/forumdisplay.php?f=20"]http://extranet.miva.com/forums/forumdisplay.php?f=20[/ame])
I am sorry if I was too critical, but unfortunately I see daily plenty of store owners who start e-commerce business thinking that they begin making big money after renting a $50-a-month server with a cart, and spending a month or two (and perhaps a few hundreds dollars) on setting it up. Well, it can happen if you have an exceptional product, or unbeatable prices, but if you don't, you better invest much more effort, time and money into building your store, the visitor base, reputation, and promoting it. Otherwise do not expect you'll gain more money than if you opened the same store in bricks somewhere out in the desert.
