Internet Retailer reports that conversion rates are rising among online retailers - with 21 percent of them, nearly twice as many as last year, reporting rates of 2-3 percent - but 90 percent of retailers have cart abandonment rates higher than 10 percent, according to the E-tailing Group's 4th Annual Merchant Survey. The study also reported that 76 percent of marketing budgets are online this year, up from 71 percent last year and 55 percent in 2003.

Some 40 percent of respondents said they sell through a three-channel strategy, up from 36 percent last year and 26 percent in 2003.

Also, online sales account for 1-10 percent of overall sales for 36 percent of respondents, but 41 percent of overall sales for another 34 percent.