I think this is a really important conversation to have, especially for artists & crafters. Thank you OP for posing the question with genuine curiosity and openness!
I also agree with CalaverasYCorazones on this topic. I totally understand that folks are well-meaning and have nothing but great intentions, but there really is a big difference between intent and impact. The reality is that even something done or said with good intentions can hurt others.
I feel that glossing over topics around race, racism, exoticism, tokenism, cultural appropriation, etc. by using the term "overly PC" is highly offensive to the many individuals and communities who have been displaced, hurt, killed, and/or otherwise impacted by the very real history of colonization and racism in the US and around the world.
I want to second the recommendation to check out this blog about cultural appropriation from an Indigenous point of view: nativeappropriations.blogspot.com/
I've used it quite a bit to teach about these topics with my 7th grade class. It has tons of interesting points to ponder and discuss with others.
I also recommend reading Peggy McIntosh's "White Privilege: Unpacking the Invisible Knapsack," especially for any white folks interested in learning about the many "invisible" ways in which we benefit from institutional racism. If you paste the title in Google, the article will pop up for you to read.
Much luck to all of you with your shops!