My natural milieu is contemporary experimental music, so the dynamics are different to trad folk of course, but I fully agree that Bandcamp is pretty good for selling both downloads and physical media.

They do take a cut, as you'd expect... But it also has the virtue of forming something of a grass roots sales ecology - acts that are on there can link their pages to peers and fellow travellers, etc. So if it looks serviceable for your own needs, it could be good to try and encourage like-minded artists and labels to get on there, too!

In terms of independent highstreet outlets that might have any interesting in taking trad CDs these days - the small Hobgoblin Music chain of instrument shops springs to mind, but I wouldn't wish to overstate that.