While this topic is covered in my FAQ, I wanted to post it here as well, and share a few extra tips which may be useful.
First, the toys that you make from Fuzzy Mitten™ patterns are yours, and you are free to do whatever you like with them. I don't mind if you sell your creations — in fact, it's totally encouraged! There's only a couple of small caveats:
1. you may not use "Fuzzy Mitten" in the name of your toy (because "Fuzzy Mitten" is a trademark). In other words, it's perfectly okay to make and sell a "Jane Bobbin's Teddy Bear" or a "Jake Bobbin's Easter Bunny," but making and selling a "Fuzzy Mitten's Teddy Bear" is not.
2. on the other hand, you are welcome to mention somewhere in the description of your toy that it was "made from a Fuzzy Mitten™ original design," and I would like it very much if you do! You can also include one of these labels with your toy.
If you're making and selling toys made from Fuzzy Mitten patterns, feel free to let me know, so I can mention it on social media. I also keep a list of knitters willing to take custom orders for toys, because I don’t have time to knit these myself.
Here are a few tips, which I learned over many years of making toys to sell. I hope you'll find them useful, and that you will contribute anything that's been especially helpful for you!
If you're knitting ready-made toys, choose yarns which are durable and easy to care for. Most people buying toys won't be familiar with taking care of wool and other fibers which may need particular washing and storage methods. My personal preference is for machine-washable wool, or cotton/acrylic blends. I've also found yarns with some viscose/bamboo are very soft and cuddly, but may not be as durable.
Consider selling the toys and clothing separately, and having extra clothing choices. This way, customers can create their own set, and might even buy some extra clothes to go with their toy.
If you're selling online, take lots of photos from a variety of angles, in a well-lighted and clean location. Try getting a photo of someone holding the toy, so the customer has a better idea of the size (it also makes them look more cuddly). In addition, some sites allow you to upload short video clips, which can show off your toys even better!
Please don't undercharge for your work! Knitted toys take a lot of time, and your time is valuable. If you think customers may question the price, consider including the time the toy took to create, in the toy description.
Finally, if you're taking custom orders, make sure to charge a deposit to cover the cost of materials and some of your time (up to half the final cost of the toy). This is quite normal for custom orders, and it will help ensure you're not left so much out-of-pocket if the customer decides they don't want the toy after all.