First off, the site looks very nice. It's well organized and functional. Nothing about it "turned me off."
As for the baskets, they look very nice as well -- but they are somewhat "generic" in terms of their contents, as Diva noted. I order quite of few of these kinds of things for clients, new acquaintances, etc. - always from Harry & David, because of their trademark fruit and other products (I really like eating them, so I feel good about giving them). Your baskets are priced comparably to theirs, so to get me as a customer, you'd have to have something equally desirable and unique to your baskets. So my first suggestion would be to brainstorm on what that might be. What could you add to your baskets or contents to make them stand out and give you a unique market niche?
Your shipping charge for delivery in 3 to 5 business days is about $10 (compared to $8 for a similar-sized H&D basket). That's a not a problem, but charging $40 for 2-day delivery and $60 for overnight delivery definitely is (H&D charges $12 for 2-day and $15 for guaranteed next-day delivery on similar baskets). The gift basket is often a "last minute" choice for many regular shoppers, and business buyers like me are sending a gift to try to follow up on something quickly. In each case, your 2-day and overnight shipping price is almost certainly turning business away. So my second suggestion would be to find a less-costly arrangement for expedited shipping.
The two issues above have probably caused some visitors to think, "Hey, if I have $50 and week to do this, I can just make a basket myself!" So they may have used your very nice website as a Martha Stewart type model for how to build a gift basket on their own. My third suggestion would be to have a "customized basket" option, where people can choose the items they'd want included and virtually build a basket on line (as opposed to running around town and buying the contents themselves).
If I'm spending more than $25 on a personal (non business) gift for someone, I'm probably going to put some thought into it and try to choose something for that person specifically. I'm more likely to choose a generic (and less expensive) gift for someone I don't know as well. So my fourth suggestion would be to create a low cost option in each of the "usual" gift-giving categories (thank you, get well, birthdays, "just because") -- in other words, a basket that could be purchased and delivered for under $30. While your profit margin might be small on these, they would be "business builders." For instance, I might order something like from you for a neighbor, and if it's delivered late or less impressive than I expected, no big deal; yet if it's on time, really nice, and you provided good service, I'd likely order again (and order more) in the future.
I did not see a category for "care package" type baskets containing the kinds of things I'd want to send to a student away at college or someone in the military. My final suggestion would be to add something like that.
I hope my feedback did not come across too harshly, and that my suggestions will be helpful. I wish you a Merry Christmas -- and more sales!