Stuff we all get is mostly garbage we all get. Here's how I would approach rethinking SWAG and making it a positive for your brand, not a contributor to global pollution.
First, make sure there is true meaning behind your brand, and there are people who follow it and are getting value. Without this, merch does not matter. It's a veil attempt to try and persuade someone.
From there you break it down by the type of products, how you incorporate the brand into the items and how you gift the items.
My rules for the types of products include: toothbrush products (things you use everyday), high quality, luxury brand products, and products that your competitors would certainly almost never consider gifting. Meaning things that make sense given who your brand is and what it stands for.
Now some thoughts on how to add your brand aka logo to the products. Make it subtle. Do it in a unique, fun way. Maybe on the sleeve, but not one giant logo on the front to or back of the t-shirt. Create clever copy to sometimes include on the product. Or personalize the product to whom you're sending it to. Basically do the opposite of what you see with most SWAG.
Lastly, how you gift it to someone matters. They'll remember not just the gift but also how it was delivered. Handing things out for free isn't something I love to do. You need to make it more special and personal. Writing a thank you card or handwritten letter is something I always recommend. Connecting it to a moment or event is great. Be genuine on why you're giving them this gift.
Merch should feel special and personal. If it doesn't, it's probably just shitty SWAG.