The shaggy texture makes some people think they are actual sheepskin rugs, but that is not true. While quality flokati rugs are made entirely of wool, it has been carded and spun into a yarn which is then soaked in the waters of a fast-running stream. The rugs sold commercially by Ikea and other suppliers usually have not been made according to this process, and may have artificial materials or backings.
The authentic color is off-white but many manufacturers offer dyed flokati rugs.
GreekInternetMarket.com offers a history of flokati making and what you should look out for in a flokati rug.