The Velveteen Rabbit gets its name from its main character—a little stuffed bunny made of velveteen. So what exactly is velveteen? Well, it's kind of an imitation velvet. It's also apparently not the most luxurious fabric because the narrator explains that the other toys snubbed the Rabbit because he was "only made of velveteen" (3).
Wow. Those nursery toys sure were design snobs.