I love making these handbags out of Designer Series paper. I use them all the time for gifts. This one is 12x12 size, but they are cute in a smaller version too. You can make them any size you like.
Here's one I made using the Retiring Timeless Portrait Designer Series Paper, Retiring Very Vanilla Satin Ribbon, and Retiring Round Tab Punch:
Here's the inside view. I love that these purses show off both sides of the paper: