Many visitors, they stay but no sales

[worldofrugs]

Hi all,
I like to honest opinions on our website http://www.worldofrugs.com/.
We get aprox 350 visitors per day with aprox 4200 page-loads. About 15 to 20 of them are returning visitors (based on cookie).
As I do get the visitors, I am wondering why I hardly get any online sales.

Like to mention that I'm going to redo the home-page to make it more e-commerce, so keep this in mind.
Here's an idea I had for the new homepage: Drawing of new HP (http://www.worldofrugs.com/files/New_HP.jpg)

I would like your opinion on why it is I hardly get any sales online. Is it the layout, design, etc..?
The cart is fully working and tested, so there's no problem with checking out, preventing users to buy.

All opinions / tips / etc. are VERY welcome!

[J2NYC]

In this economy people may not be redecorating.

One comment I do have, though, is that you might want to rethink the organization of your site so that the search results bring up fewer options. For example, I just took a look at the traditional designs and you have 76 pages of them. You have a search option, but if I want a traditional style red rug that is 8 X 10 and more than $1000 the search return 23 pages of red rugs of all styles.

You have a lot of inventory, but that number of pages is overwhelming. Perhaps you can organize your search to include styles and some other options. Also, the max limit of $1000 seems a little low. Maybe you can add a $2000, $3000 etc limit.

[worldofrugs]

Thanks for your review J2NYC!
I would not have thought that many pages would be overwhelming, so having an 'outsider' look at things sure helps.
It's a good suggestion to have more options in the Quick Search (prices).
Again, thanks so much for this suggestion!