Tips for Etsy success
One tip I have is post in the forums! The majority of my sales that I know where they came from were people who found me in the forums.
Know your target market (In your case, people with babies, but be more specific, if you can. Where do these people usually shop for baby clothes, and why should they buy YOUR clothes instead?)
Social Networking is really good for crafts... many people have great success on twitter, blogger, and facebook.
Take. Good. Pictures. I can't stress that enough! People will glance right over your work if the picture doesn't POP!
Hope these tips help. I am hardly one of the biggest sellers on Etsy, but I have learned my way around it quite well.