If you've tried selling used kids' clothing on Ebay you know that you can make a good profit and a better one than when you sell new clothes. While selling used clothing may take a little more of your time (finding, inspecting, washing, etc) you can easily make 10-20 times what you invested!
Most of us are familiar with getting used clothing from our own children's closets, garage sales or thrift/consignment stores. These are excellent sources and I still make weekly visits to my local thrifts, but it's not a good way to pay the bills. I do have two other sources where I usually find a great supply of quality used kids clothes extremely cheaply.
Most people wonder if moms get offended if I offer a very low amount of money for their kids' clothes. Well, in my town there are no consignment or resale-type shops. If these moms want cash for their kids' clothes they have only 2 options: Have a garage sale or sell it on eBay. I am simply giving them a 3rd option and it involves the lease effort, saving them time.
I also post ads and flyers. My best response comes from ads in my local free weekly paper. I've found that the key is in how I word the ad. Here are my two recent examples:
Closets overflowing with clothes your children have outgrown or no longer wear? I will pay you CASH for your child's used clothing!
Need extra spending money for Christmas? I pay CASH immediately for your child's outgrown clothes!
This method will get the phone ringing. And I've found that once I have a few regular clients I can stop advertising. The kids don't stop growing so the parents call every season!