Cut a piece of felt (color of your choice) in a 5" wide strip.
Fold from bottom 4.5".
Pin purse in place and blanket stitch around purse.
Measure 2.5" in and 3" up from bottom to find placement for button. I used a fabric covered button.
Cut a hole for the button to fit through. Whipstitch button hole to reinforce it.
I added a bird applique to my purse. You can do whatever embellishment you like.