Hi V.,
I LOVE the Kidz Shoppe, in San Jose on Union Avenue. Its a consignment shop for kids used clothing, shoes, books, toys, gear, accessories, videos, and gifts. GREAT store. I've sold many used baby clothes through them. They even have a rack for "new with tags" stuff, and I find great bargains for my two kids.
http://www.thekidzshoppe.net/
Call and make an appt. to bring your clothes in. They will go through them, assign a price, and give you a cut of the proceeds. I love to help these stores stay in business.
A.