I had the exact same problem - Overstock (and Home Decorators Outlet) have good prices IF you don't have to return an item, because return shipping gets expensive. Those stores also don't tell you the brand name of the rug, so you can't visit a real-life store to view the colors before purchasing.

I had several rugs to purchase, so here are the different strategies I used:
1. Bought a small version of the rug online, so return shipping wouldn't be too expensive, and then bought the bigger one if I decided I liked the colors

2. Bought the regular size online (without trying the smaller version) only after reading many reviews. This was risky but it wasn't in a main room so I wasn't as picky

3. Bought at real-life stores only with a super deal - on some brands, the real-life stores have the same prices as internet merchants

Some other suggestions I've heard but not tried are: Craigslist (so you can see it first, but also can be a good deal). Also, Frontgate has free return shipping, so you can return it without having to spend a lot on return shipping.

Tuesday Morning if you have one close by is a great place to find good quality rugs. I bought one on one of their special sales- 100% wool !

I, too, am in paralysis over rugs!! :) ie, need one but can't find one or they're too expensive, etc!!
I ordered a rug one time from Overstock. Of course, there were no ratings on that particular one to compare other people's experience BUT, great price and the rug was pretty, however, not at all like what the pic showed. And it looked like it had dirty spots all over it, so after contacting Overstock, they emailed me a free shipping label. So returning it was no problem.
I'd suggest that if you try Overstock just be diligent about checking reviews and don't bother with any that don't have reviews. Even the descriptions are sometimes not accurate!

As far as placement, I think the rule is that the front legs of all furniture needs to be just over the edges of the rug.

I have had good luck with Decora Rug online, and I also would order the smallest size first to see the colors, then either return it, or maybe you can find a place to use the small one anyway. Also, if you know the real name of a particular rug, do a search and look at it on as many sites as possible, to get as many "views" as possible. For placement, at least the front legs should be on the rug.

Target has nice rugs and most have free shipping and most of them if you don't like them you can return to a Target store and not have to pay shipping to send back.

Try Homegoods. Their inventory is sometimes pretty unique and it changes often.

I've had terrific luck with finding nice rugs (for very little $!) on Craig's List lately. In fact, right now I have my eye on a CL rug that looks almost identical to the one I bought off CL week-before-last for my living room, except it's about a foot smaller. Seller says it's brand new (it's shown rolled up in original packaging as well as unfurled), and the seller's only asking $35! I've emailed him/her and hope to hear back soon!

It can be scary buying an area rug. Although I was a little nervous I did buy an area rug online...and whew! it's gorgeous!
It's a natural wool shag rug and I bought it from Import Flooring, an online area rug store.
I liked that they offered free shipping on returned items. Don't know if other sites have this, but this site also offers samples.
BTW, vegas t, I have a heavier couch with boxy wood feet. I just place my rug right in front of it. Looks great!

Here is a link that might be useful: Import Flooring

Thanks everyone! I am just so hesitant because I am trying to tie in blue chairs with cafe colored couches. I dont want to have the shade of blue way off in the rug.

Aaggh!

After you find a rug online that you are interested in, note the manufacturer, etc. Then check the manufacturer out online to see what dealers in your area handle the rug. Unless you're buying a used oriental rug, you may be able to view a rug like the one you're interested in, or some rug dealers will order a small sample for you to see.

I saw a beautiful wool oriental rug that I liked online, then found a dealer who had a rug from that manufacturer. She also actually matched the online price and ordered mine for me, but the rug she had was similar enough for me to see the shade of red I was concerned about. This particular rug I bought was machine made--but I needed a really large size that I couldn't find in a handmade rug.

I have another wool rug that is hand made that I got at Costco. I love them both and they were really reasonable in price. Costco's nice because you can buy it and then return if it doesn't match, but they seem to only have earth tones right now. Good luck! I remember how hard it was for me to make my decision before I could actually see the color and rug in person. Try your best to at least see an actual photo instead of the drawings or small pictures shown online at many websites.

vegas- Good luck with your blue/cafe rug search! I've been trying to match specific shades of blue with little luck. If you're going more for an aqua, ice blue, navy or tiffany blue you'll have better luck (I was looking for more of a sky blue). I did find ordering the smaller size rug (like 2 x 3) and having it delivered to the house, was the best way to really get a good look at the colors of a rug in the lighting of your house. The return shipping isn't too bad on the small rugs if you have to pay for it.

Have you thought about asking for samples?
The best rug sites on the Internet offer samples and will pay the return shipping within 30 days or so.
Why not try a natural rug, with nature's colors...you can't go wrong there!

I just went through the same thing and finally found mine at Home Depot. I paid $390 (tax included) for an 8x10 and I love it.

Good luck

Joanne