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.
Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.