• by Jack Loechner , Staff Writer @mp_research, May 3, 2005

The E-tailing Group Inc. reported, in its 4th Annual Merchant Survey, that conversion rates are rising among online retailers, with nearly twice as many as last year reporting rates of 2-3%.

Based on a survey of more than 250 online retailers, the study reports that:

• 41% of respondents said their conversion rates were higher than last year, while only 23% said rates were about the same
• 70% of respondents said their conversion rates were 2% or higher
• 49% said their rates were 3% or higher
• 35% said their rates were 4% or higher

Other key findings include:

• 40% of respondents say they sell through a 3-channel strategy,
• Online sales account for 1-10% of overall sales for 36% of respondents, but 41% of overall sales for another 34% of respondents
• 76% of marketing budgets are online this year, up from 71% last year
• 19% of respondents reported average marketing costs per order of less than $1; 39% reported average marketing costs per order of $1-$5

Read here for more.