Having pinned the handles in place, I’m ready to sew them down.

Starting at one of the side seams, sew around the top of the bag about 1/16″ from the bottom folded edge of the hem, sewing through the folds and the inserted bag handles.

Now fold the handles up, over the hem and the seam that you just sewed, so they come up out of the top of the bag. Pin them in place, then sew a second seam, this time 1/16″ from the top of the bag, sewing through the second layer of handles.

All that’s left now is to reinforce the handles and shape the bag bottom, and I’m done.