Let's get started!

I chose transfer paper for these particular bags because I wante pretty detailed graphics and it takes way too much patience to hand cut a stencil for something like that.

First, I created this little "Groceries" graphic in Photoshop. If I'm making a graphic that prints out onto multiple pages I usually use Powerpoint to size and print it because it turns out easier to visualize and match up. I printed out the graphic onto Super Soft Transfer paper:

I carefully cut out my graphic and made sure the two sides matched up, placing them face down onto the burlap bag. Pressing a hot iron for a few minutes (careful not to burn the paper or bag!) transfers the image to the bag: