They got a bunch of them in HOBBY LOBBY, some are Iron-on, some you have to sew. They got Mickey and the gang and also Princesses, Pooh and Friends, and more.
I have seen them in Michael's too! In fact yesterday, I found some that were clearance ($2.00) each with matching ribbon. They're flat enough that I'm going to use them for scrapbooking. The ribbon is worth it alone! There were the following designs: Mickey, Pluto, Mickey and Goofy together, 2 different Pooh designs and 2 others I can't remember.
In past years I found embroidered design patches at the Main Street Emporium in WDW and at Joann's at home.