Quote Originally Posted by Ultra Mackness View Post
Perhaps it's easier to differentiate merchandise as as objects performing their function independent of the storyline/mythology/canon.
I'd go with this for Merchandise... It's similar to what I would have said.

Glassware, lunchboxes, clothing, cutlery, ice creams etc.

I'm far more lenient on toys. In that just about everything else is a toy.

I consider statues toys. Expensive toys, that don't "do" much but toys none the less. Puzzles, card/board/computer games, yo-yo's, happy meals, models all toys.

In defining a toy, I would say it's something that entertains you.