It's not too early if you're planning on doing craft fairs.
I don't know what you consider an acceptable cost for packaging. I've seen some nice ideas but it might cost too much. I'm not recommending any of the sites which I have posted links. I'm just using them as examples to show packaging. If you like one of the ideas, you'd want to do some comparison shopping.
I'm not sure about a paper bag because I think it would be better for customers to see your products. Unless your theme is rustic and then you might be able to use printed rope handle bags. Example - Nashville Wraps has beautiful
printed Christmas bags and they also sell coordinating tissue paper. On some of the pages, they have videos demonstrating the bags so you get an idea of size and how easy it is to plop something into a bag. You could also tie raffia bows to the handles. You could leave some product out on the tables so people know what is in the paper bags.
(BTW, someone once mentioned that bright red Christmas decorations attract people's attention. This is just a suggestion but you might want to consider putting a small tree topped with a bright red bow on your table. If you don't like the idea of a tree, just put something red and festive on your table that people would be able to see easily from a distance. The red draws the eye to it and the festive item makes them think "Oh yeah, Christmas is coming and I need to buy some gifts.)
I don't know how big of a bag you will need but I think
printed cello bags are cute. You'll see some Christmas ones if you scroll down to the bottom. You could use curly ribbon and a bow to tie them closed. They may not be big enough.
I really like the
Clear vinyl & Colored Organza Bags on papermart's site. But these might be too expensive. However, I think they'd look elegant and upscale. You could add some
decorative paper shreds to the bag to help make them visually more appealing to customers.
I don't know where you could find baskets that would be the right size for what you need to package. Also, I think baskets would be quite a bit more expensive unless you were able to find them from a wholesaler. But be patient because maybe someone else can recommend a basket supplier.
You might want to search on youtube for Christmas packaging ideas. It seems like there is a video for everything there.