jecasc - 6:21 am on Apr 8, 2010 (gmt 0)
I have heard talk about the so called "recession" for two years now, but sales are still steadily growing with 5-10% year. Of course there might be a recession but this is more than compensated by people moving from brick and mortar to online sales. All that has declined in the recession is the growth rate of internet sales, not the sales themselves. Instead of growing with 13% internet sales are "only" growing with 5% or so now.
So if you see a decline you either are in a niche that is for some reason especially effected or there is something else going on. For example more competitors.
You are writign about an increase in traffic and decrease in conversions - but have sales actually declined?
Otherwise it could simply be more search enginge activity.