Plastic Grocery Bag Holder Tutorial

I've been meaning to make one of these for myself for a long time. So I ended up making one to give away instead (not very helpful). Here's how I did it. Please excuse my sewing jargon; I'm definitely not a master sewer.
I took a scrap of fabric and cut it in half. Its width is about 17 inches and its length can be as long as you need it to be. For my next bag I'll probably make it a bit longer, I think its length is about 24 inches.From a coordinating fabric I cut a circle using a cottage cheese lid. I picked my circle size by finding the largest circle my 17 inch wide scraps of fabric would fit around with a little space for seam allowances and some gathering.
I also cut a coordinating rectangle. My rectangle is about 2 inches by 5 inches.
I took the fabric for the body of the holder and sewed them together into a tube along both 24 inch sides, not sewing the 17 inch side. On one side I stopped sewing two inches up from the bottom, skipped one inch, and then continued sewing to the bottom. I skipped the space between the pins, back-stitching before the pin and then after the pin. This is the place the ribbon goes through.

Take the small rectangle and fold it over itself and pin. Then sew where the fabric end lies. For this one the fabric is right in the middle. If you don’t want the sewing to show you can fold it in half with right sides together and sew it together, then turn it inside out. I didn’t really care about being able to see the sewing – I just wanted to avoid the hassle of turning it inside out afterwards.Then I folded my circle in half and pinned the middle for both sides.

I lined up the side seams of the rectangle and pinned them to my middle points. Make sure you're pinning the circle to the side of the body that doesn't have the hole for the ribbon. I then pinned all the way around the circle, creating a fold where there was extra fabric. This will make it look ruffled when it’s complete.
After pinning all around you’ll need to place the rectangle for hanging. Do this by removing one of the pins (I put mine along the seam opposite from the ribbon opening), folding the rectangle in half (preferably with the raw edge on the inside), and then line the raw edges of the rectangle with the raw edge of the circle. The rectangle will be inside; it’s present in the above picture. Then you can sew it all together and turn the whole bag inside out. Next I took care of the bottom hem. First I pinned and sewed around the hole for the ribbon like it was a button hole, except I just used a straight stitch. I laid the seam allowance flat while doing this to reinforce the hole.Then I folded up my hem an inch, pinned it in place, and (using a zig-zag stitch) sewed along the top of it. This makes the case for the ribbon to go through.
Afterwards I cut my ribbon to 32 inches and, using a big safety pin, threaded the ribbon into the hole. Then I synched it slightly and tied a beautiful bow. TA DA! I felt a little silly bringing this to the gift exchange, but the lady who drew my name was super excited about freeing up her cabinet and I got an offer to buy one. So in the end I was pretty happy.