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If you fold over the raw edge of the fabric a small amount, about 1/4 inch, and then fold over for your desired seam/hem and sew close to the edge, you won't have any raw fabric edges on the inside of your bag. Raw edges of fabric will wear away up to the seams as the bag is washed and used, and then you'll have to repair the seams which will be tricky with no fabric left for a seam allowance. Plus, the inside of the bag will look more professional and less homemade.