Keep in mind that infant/toddler clothing is very regulated with safety restrictions.
See here for some of the primary considerations. Here is another more in-depth explanation with links. Interestingly, the report says that the CPSC is “sharpening it’s teeth” in this area!
I am not trying to discourage you, far from it, just forewarn you! I like SpatzieLover‘s suggestion of organic. There are regulations concerning formaldehyde resin and such that you can be assured won’t be a problem if you stick to organic fabrics.
When it comes to the flammability requirements they are mostly of concern with sleepwear. That’s why you always see the warning label on infantwear “not intended for sleepwear”. Sleepwear must meet very stringent regulations for flame-retardency. !00% cotton can be made flame retardant but it’s an expensive process and most people don’t want to pay for it. So remember the “not intended for sleepwear” proviso. Honestly, a lot of what sells on Etsy from small companies and craftsmen would never pass muster with the giant childrenswear companies like Carter and Gerber. They must meet industry standards and are carefully monitored.
As far as snaps go, if you use them, use plastic not metal. Metal poses the hazard of lead content. Here is a place you can buy the plastic snaps and the snap setter. I highly recommend buying the snaps setter instead of pliers. It works better and is faster. It’s a one time investment that will pay for itself in time saved and longevity.
I also like baby clothes to look like baby clothes! I am not a fan of the miniature adult look. Ok, it’s cute once in a while, such as a tiny little Motorcycle jacket (who could resist?) but generally I love the classics.
Soft, easy to wash, comfortable for baby, all good. Moms know how important those things are.
I think color is a big selling point. Pastels are classic but primary colors are more lively and vibrant and appealing. Themes are good too like this jungle look.
Childrenswear, even whilst staying classic, is getting very trendy. Look at this Oilily Fairy Tale theme. Right up to date with the trends! Movies are crazy for Fairy Tale themes and they have picked up on it. Of course you may not want to go that route, the trendy route, but it’s kind of fun and it’s a big selling point.
I always find that Etsy is so full of creative energy! But you can also learn form the professionals ,like me :)
I think childrenswear is just such a fun and lively and rewarding pursuit. I wish you all the luck in the world. Feel free to PM me if you have questions and I’ll help you if I can. I have some experience in this area.