Many products from strollers to toys, are recyclable.
If you're in the Metro Vancouver area, you can contact Pacific Mobile Depots, which organizes pickups and drop-off dates in and around Vancouver for materials that are difficult to recycle (they even recycle retired kids car seats).
Come July 2012, look for the Electronic Toy Stewardship program (PDF) in B.C. The first stewardship program of its kind in North America for this product category, they'll take electronic or electrical toys, including trains, car racing sets, cars and trucks, remote control toys, ride on toys, video games and video gaming equipment and consoles.
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In Ontario, Eco Bebe Boutique recycles materials from old and new strollers, and also donates functional (but not "A-grade" strollers) to charity. And then there's BabyEarth RENEW, a hassle-free baby gear recycling program. If you're done with your car seat, stroller or high chair, you can ship it to them! They make sure everything is properly disassembled and all usable parts are sent to accredited recycling centres. The catch is that you pay the shipping costs, and they're in Texas.
Toy recycling is challenging because they are made from many types of materials—namely, a combination of every type of plastic (numbers one through seven). Try to collect as little toy clutter as possible; it's simply unnecessary to buy everything! And sure, this could be a challenging request to your generous friends and family.
Did you know that you can also rent toys? My Toy Fairy is an online toy rental company in Vancouver that has a wide range of brand name toys for children ages newborn to five years old.