When I first opened your site I thought it looked very professional, and in many ways it is, but....
The use of yellow for your shopping cart, sign-in, etc. is great! Very eye catching without being obnoxious.
There are a few inconsistencies I see with font size and color. The medium (cool) blue doesn't mix real well with the warm colors you use through-out your site. This has nothing to do with people not completing their purchases though. ;)
The first thing I noticed - maybe I missed it? - there was no "products" list. You have Hair Style and Hair Care... under those headings you have your products.... I didn't realize they were the products until I clicked on them. Add Products or Supplies, something along that lines, to the Hair Care and Hair Style headings. Give people a reason to go to those pages.
Once you get to the products page... you get a picture with only a link to another page with more information. Break up the images and add more text. Headings, quotes, hair care tips, something. The product pages are very bland, boring... and not mentally stimulating.
If people are adding things to their carts but aren't going through with the ordering process it is generally because they've talked themselves out of buying. Shampoo's, conditioners and other hair care products are impulse buys. People will run out to wal-mart or go to the local grocer and pick up a bottle of shampoo because they need it. Not because they want it - you're product should not only be a need it should be a want. They want to buy - you're just not sealing the deal. Reminding them of free shipping is great, but the word Remember...... "Remember! - Free Shipping" Isn't very motivational. If you really want to get them, try... Free shipping - limited time only. Something that forces them to make a choice today! You may have free shipping for years... doesn't matter. Once a buyer becomes a regular customer... they'll no longer notice the "limited time only" part of the phrase.
You have a great site and 5% may be the norm... but it's not the rule. The rules are yours, you just have to be willing to set them.
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