The Medina is the obvious place to shop for ceramics, leather, carpets, and brass goods. The lanes inside the fortified gate are lined with workshops where craftspeople produce pottery and weaving — less tourist-oriented than equivalent medinas in Tunis or Sousse, and prices are more reasonable. Expect to haggle for everything except food; opening prices can be three to four times what the seller will accept.
The Friday market on the main street near the Grand Mosque sells a mix of local goods, produce, and textiles. For ceramics specifically, a half-day trip to Nabeul (20 km) is worth it — Nabeul is Tunisia's ceramic capital and has a wider range at better prices than anything in Hammamet.