Government agencies typically require a traffic study when there is controversy with a neighborhood group about your project or your development needs to go through an environmental review process.

Normally, a traffic impact study is conducted whenever a proposed development will generate 100 or more added (new) trips during the adjacent roadways' peak hour or the development's peak hour. It's not clear why a home handbag business would generate that kind of traffic, but perhaps the way you conveyed the business gave the agency the impression that you had a far more industrial operation in mind.

Speak to a local business attorney who is familiar with the zoning laws, as he or she may know of an exception to the local rule on traffic studies.