From what I understood from the other comments (site is not working), everything is custom made, unique and handled by one single person, that explains the price, and honestly, it seems okay.

If you outsource to China, you take all those Pros away and the product will turn into another toy factory.

100 USD is actually pretty cheap for a custom made toy.

Agreed. It's dirt cheap. I know dozens of parents who would pay five times that.

And you should probably charge that, add a few free toys for poor kids, and come out ahead in terms of money and morals.

Remember to add the cost of admin time to that though. Outsourcing like that is not going to be free and easy especially at smaller scales.

And most manufacturing operations are geared for bulk. Going this way you would lose the uniqueness of each item, which is sort of the whole point.

And with scares over the recent years with lead in paint and so forth, I'd be careful going to China for kids toys. Definitely don't go with the cheapest, and definitely have some strong QA provisions in your contract.