Does your plastic bag drawer look like the one pictured?
If so, this easy life hack will give you more space (for more bags or whatever else you need more space for!)

Step 1: Laying Out the Bag

Lay the bag on a flat surface and get it as neat and smooth as possible. (So it looks as close to what it looked like while still on the bag rack in the store.)

Step 2: Beginning the Folding Process

Fold the bag in half lengthwise, and smooth it out as flat as possible. Starting at the bottom of the bag, slide your hand along it to get out all the air.

Step 3: Fold #2

Fold the bag in half lengthwise again. Be sure to have the handles on the bottom, and the middle of the opening laying on top.

Step 4: Fold #3

Smooth out the air again, from the bottom of the bag to the opening.
Take the bottom of the bag and fold it in half to the top of the opening (base of handles).

Step 5: Fold #4

Repeat the last step, by bringing up the new 'bottom' of the bag up to the base of the handles.

Step 6: Final Fold

Repeat the last step (again). You should now have a bag bundle that measures about 1.5" plus the handles, by the width of the handles.

Step 7: Tying the Bag

Take the bundle and wrap the top handle under the bundle and bring it back around to the front.
Then tie the 2 handles in a half hitch just tight enough to keep the bundle from unfolding.

Step 8: Ta-Da!!

That's it! Just repeat these steps for each bag, until you have a pile of neat little bag bundles, where you once had a gigantic pile of noisy puffy plastic bags.
Now you have more space in your bag drawer, bin, bag, under sink, or wherever you keep your plastic shopping bags.
These steps will work for any size plastic shopping bag with handles. However it doesn't work for the bags that just have a 'jellybean' shaped hole cut out of each side. (Maybe use those bags to put your bag bundles in?)
The first and last pictures in this 'ible, (those of the bag drawer) have exactly the same number of bags in them. (Notice how much more space I have In that drawer now). I folded about 50 bags in less than 10 minutes.