I saw this on Pinterest and decided to make my own. I used the dimensions as specified in the instructions for the smaller bag. I then added eyelets to hold the handle and a snowflake punch detail on both sides.
Here is a larger bag that I made using a half sheet of newspaper, triple ply, and I added grommets to hold the ribbon.
In retrospect I should have stamped the newspaper before assembling the bag to give it some extra style and interest. Overall I think it's a cute idea but handling newspaper can be messy and I'm not sure it would hold up to anything heavy. Here are the instructions.