Ha ha, it has been quite a while since I embroidered the words onto a bag. You bringing up the idea has got me thinking about it again. I have only embroidered a few.
As for attaching the labels, for me it is helpful to tape the label onto the bag before sewing, stopping of course to remove the tape as I make my way around the rectangle. I like to use a zigzag stitch for sewing on the label. At first, I would always switch to white thread for the label, then I took a good look at photos that Crafty Foxes posted, showing colored thread on the labels, and I really admired the look. Now I use the same thread on the label as I use on the rest of the bag.
Each of our bags really are unique!
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