I want to make a small felted drawstring bag. I already have the idea in my head, but I’ve never felted anything so I have a few questions. How much does it usually shrink? Does it depend on the yarn? I’m using Patons SWS. Also, should I make the eyelets with one YO or should I YO twice to make them a little bigger (since they shrink)? As for the I-cord, should it be felted separately or should I thread it through the eyelet holes before felting? Thanks!
You can find a good indication of how much something shrinks when felted in this thread.
Remember too that you typically will use a significantly larger needle size for the yarn you are using than you normally would if it was a non-felted item. Any felting I’ve done with worsted weight yarn was done with at least a size US10.5 needle. The loose knit fabric is important for the felting to happen properly.
As for the eyelets, you could do a double YO, just remember to compensate for that with the appropriate decreases, and don’t worry too much about them even with felting - you can actually use a scissors to cut fully felted items and it will not cause it to unravel. So if your eyelets felt shut a bit, just snip them back open.
I’d knit and felt the strap seperately and thread it through afterwards.
Thanks. I didn’t know that about the needle size. I actually did a swatch with worsted yarn on size 10’s. I cast on 20 stitches and it ended up being 4 1/2 inches. Should I go with a 13 then?
Size 10 should be just fine. According to your gauge swatch you will be able to calculate how many stitches to cast on in order to get the right size and account for the shrinkage.
Good luck!! xxx
One last question. Should I even make eyelet holes? I was checking out the booga bag pattern and saw they just poked holes in it after it was felted for the I-cord. Is that an easier way to go?
It might be easier. I might do the eyelet row just-in-case, because it would make a good guide and you wouldn’t have to worry about measuring them or keeping them even. But if you’re not worried about that, GO FOR IT!!! 
Heh, so maybe that wasn’t the last question because I have another. I’m knitting it in the round and the top and bottom are curling like crazy. I’m seaming the bottom anyways so that really doesn’t matter, it’s the top I’m worried about. Once I felt it will it fix that or is there something I need to do to it before I try felting?