Storing baby clothes follows the same rules as regular clothing so for general tips, visit (Storing Clothes: How to Store Clothing the Most Effective Ways). This article can give you good ideas on how to store different types of fabrics, etc.
The purpose of the following article is to set up a logical, organized system to store baby clothes so when you want to retrieve them for your next baby (or someone else) you can easily get to what you need.
When your baby gets to the point of passing up a size, take all of the clothing and make a list or inventory of the items. Use plenty of detail like blue denim pants, gray sweatshirt, etc. so you don’t have to rely on memory when you want to research what you have. At this point, assign a number or designation for the clothing receptacle you are storing in. It can be as simple as A, B, C, D or 1,2,3,4 etc as long as each receptacle has its own identity. Then you can use either a 3×5 card catalog system (or your computer) to log what is exactly in receptacle. “A” etc, then set up a schematic on where each storage receptacle is within your storage area. So for instance, if you look through your inventory to find baby clothes for a newborn and you set up your storage system correctly, you can see what exactly; you have in storage and where that receptacle is within your storage space. It may sound like a little bit of overkill and a lot of work, but you’ll be updating your inventory a little at a time and the organization will save you headaches on the back end. This system on a larger scale, has been used by moving and storage companies to organize their warehouses for a long time.