Yarn can only be bought at the flower festival and the spring/summer flea markets. If you're not close to any of those, get a barn, a sheep, shears, and a yarn maker. You'll be able to make your own yarn!
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the dye pot comes with the yarn maker -Genevieve
Go to the tailor. You will need to bring: 2 flax yarn 2 wool yarn 2 silk yarn and a bunch of money maybe 2000g?
By buying flax seeds from Taylor's seeds and plant them, keep putting fertiliser on the seeds, when they are grown you should have at least one "shining flax" when you come across a "shining flax" put it in a yarn maker in the animal shed, you NEED to buy a yarn maker from village shop, and it will make a "Shining flax yarn".
There is no boiled silk or yarn
Dyed yarn. Put in a herb or flower! JUST ONE, and put in one yarn! Presto! Just, BE AWARE: DO NOT JUST PUT IN YARN BY ITSELF OR IT WILL BE FAILED YARN!