I was raised by a woman who adores craft fairs, and from her I inherited a love of handmade gifts. Even if it costs more, I prefer purchasing a handmade, one-of-a-kind gift ten times over the alternative. The trouble with this, however, is that craft fairs aren't always in town and, when they are, you're limited to the artists there.
That's why places like Etsy are so wonderful--an online shopping community made up entirely of artists. The problem then, of course, is that you've 100,000 shops to choose from. If you're in a hurry, or are overwhelmed by the sheer number of choices, then you should check out Elsewears. Elsewears is run by two Brooklynites and "a network of designers, enthusiasts, and collaborators that spans the globe" and features wonderful handmade objects like the above pillows, by Estela Lugo. You can browse by type of object, specific artist, and even by intended recipient (for him, for her, etc).
Personally, I enjoy exploring the massive Etsy network for handmade treasures, but Elsewears is another great choice!