A lot of people frown on thrift stores, but you won't believe how much money i have saved, and what good condition the baby clothes are in. IF you hit half price day or sack sale (most have them) the money goes that much further. My children had carter onesies, and other good quality brand names as well. My grandaughter loves puffgirls. They are not the trend right now, but they were, and she has overalls, hats, jeans, sweaters, and gloves all with the puffgirls on them that i have been finding for over a year now. I bought dreft and washed all the baby clothes and i felt they were just as clean as brand new. THey certainly smelled that way. I can attest that Dreft is the only thing that made my son's socks look and smell decent especially in those sweaty teen years, without the harm that bleach can cause. I don't think there is any shame in saving this way, especially when they are itty bitty. AS a single parent i can swear that we wouldn't have made it if it wasn't for "nearly new" clothes.
For newborns i always liked gowns for boys or girls. YOu dont have to stuff their legs down in constrictive clothes,nothing is binding around the waist, especially since they dont' have waists, they are just more practical.
YOu might want to check recycle.com too...I think there is one for every city in the US. Great for baby furniture!!!!!!!!! And those are FREE!!!!!!!!