I went to your shop to look at your tags and titles. Here are some thoughts you might consider and changes that if you make might help.
About your TITLE you need to put your most important words within the first few words. If you want the word "Waldorf" in your TITLE and want the Search Engine to read it and consider it then put it up front. I looked at your whale and didn't see the word "Waldorf" until the end of the TITLE. Google search will only use the first 65 - 75 characters of your title so if "Waldorf" is not showing up early enough in the title then it will be ignored.
Etsy Search reads the TAGS I looked at yours and this may surprise you although you filled all 13 slots for your tags you only have 2 (two) let me stress, that 2 TAGS that are any good and will bring attention to your wood toys. I am sorry to have to tell you that. But let's go over your tags;
waldorf- your first tag, perhaps you are not aware of this being from another country but Waldorf can refer to many things, waldorf salad, waldorf hotel, etc., if you want that tag to work for you you have to add something to it such as toys, "waldorf wood toys"
Handmade- this is also a good tag but not by itself, most of us on Etsy are selling handmade, except those selling Vintage, or Supplies. So you need to add something with it for it to have any meaning for you, "handmade toys"
wooden toy - is one of your 2 good tags
whale- it is arguable whether or not whale has any value for you. But it needs more info too, "whale toy", wood whale toy", "waldorf whale"
ocean- ocean does nothing for you, no on looking for waldorf or wooden toys is going to search for ocean
blue- in this case I know that your whale is blue, alone the word is meaningless, but used with other words it takes on meaning, "blue whale toy", "blue wood whale"
ocean animals- what about ocean animals? again the tag needs to make sense,
waldorf toys- is perfect and is your 2nd good tag
natural- natural what? natural hair, natural food, etc
cute animal- puppies are cute, koalas are cute, you are throwing away a tag here
wooden whale- I didn't see this before, this is a good tag
cij-
christmas in july- using team tags are a judgement call, I personally don't and I am Captain of 2 teams, tags are just TOO valuable
You asked why isn't Etsy picking you up for the Toys and Waldorf categories?
You have to work on your tags for the most part. I did not read your description but you should be using these tags in your description too. Etsy Search reads the first 160 characters of our descriptions and then reads all of the tags.
Being found in Search is complicated. There is no simple answer. You have to see to all these areas and not overlook anything.
Don't forget your pictures. If your pictures are not of professional quality Google and the other Search engines will overlook you good title, good description. They just won't clutter their pages with poor looking photography.
Etsy is going to promote you because it's in house. But you want that exposure, your shop looked great and when you get those tags working for you you'll be showing up in Etsy Search and Google Search.
Marilyn