Handicrafts are the name of the game in Bolivia. The country's indigenous people have been creating beautiful hand-woven goods for thousands of years. In La Paz, Calle Sagárnaga is shopper's central. Here you'll have the opportunity to browse in thousands of stores selling handmade goods, including alpaca sweaters, hats, gloves, leather bags, and textile products. Besides handicrafts, you can also buy folksy good-luck charms, from llama fetuses to miniature homes (supposedly, if you buy something in miniature, you'll soon have the real thing). Local markets are also a great place to find unique gifts. The Sunday market in Tarabuco, about an hour outside Sucre, is considered one of the best in Bolivia.
Bargaining is not part of Bolivian culture -- for the most part, prices are fixed. If you play your cards right, you may be able to shave a few dollars off the asking price, but in general, most salespeople won't drop their prices significantly. Fortunately, prices are already rock bottom.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.