I second Etsy. I LOVE LOVE LOVE that site. I go on there all the time just to see what those crafty people are up to.
At any rate, some of the things that I have made or considered making for gifts include:
Handmade hand sanitizer in cute little bottles
Handmade lip moisturizer
Candles
Soap (from a kit)
no sew blankets and scarves
Wraps (for my moms -sewn out of nubby boucle - super easy!
Funny Earrings out of baked Fimo Clay
chocolate covered pretzel sticks (with sprinkles, nuts, etc)
Potpourri sachets using those small organza gift bags
Holiday magnets using small wooden pieces and sticky magnets
Superhero capes for the kids
Tutus for the girls (this is a no-sew project)
Color bursting Pinecones (that you throw in the fireplace to change the color of the fire -this is also super easy to make)
Family photo montages in a frame
Photo calendars
I'm happy to see you're going the handmade route - it really does make it extra special than being machine made in China! Hope you find that perfect thing!
BY REQUEST, HERE'S SOME LINKS/INSTRUCTIONS ON A FEW OF MY PROJECTS:)
Homemade hand sanitizer - haven't tried this one out yet, I'm making it for a gift this year. Here's the website I came across with instructions:
http://www.associatedcontent.com/article/1153864/how_to_m...
Color Bursting Pinecones - great gift for someone that has a fireplace! I gave my parents a big pile of these nestled in a basket I got at a thrift store.
You'll need:
Pinecones (collect your own or by them by the sack at a craft store)
Color crystals (not sure if they're called something else) - got these at a store that sells fireplace accessories (about $4 a canister)
Aerosol Spray Glue ($5)- got this at a craft store
Instructions: Take cones and spray them generously with spray glue. Shake a generous amount of crystals on them and let dry. That's it! Just throw one in the fireplace and it will change the color of the flames. Each one last a few minutes.
Lip Balm: The site that had the recipe I followed is no longer available, but there's more sites out there on this. I used a mixture of cocoa butter, shea butter, olive oil, beeswax, and orange essential oil. Really, I strayed from the recipe on the measurements - I just added all the ingredients into a pot as I saw fit, the orange oil enough to produce a good aroma, and beeswax little by little until the consistency was right when heated. IT SHOULD STILL BE RUNNY WHILE HOT. Pour it quickly into your containers as it will harden fast as it cools. You can test the consistency by dipping a spoon into your mixture and letting it cool. Just make sure you don't overdo it on the wax or the balm will not be good. I picked up some basic containers at a discount wholesale craft store - but you could really use anything small with a removable top.