Best place i've ever found for baby clothes is Goodwill. Some people might worry that others wouldn't want things from there- but it's awesome!!! I bought my niece over $1000 worth of baby clothes for her little girls for around $300. The infant clothes are usually .99 and under. The cool thing is, most of the baby clothes there have only been worn a few times because babies grow so quickly....also, i found a ton of them that were brand new and still had the tags on them! They have a ton of variety too and are forever getting in new shipments. So definitely check out your local Goodwill!
Also, in Memphis, we have a program called "The Happy Birthday Baby Book"- it's a coupon book with hundreds of dollars of coupons in it- from everything from formula to diapers and wipes! You can order it as soon as you find out your pregnant, and Anyone can order it for free. I would check in your state to see if you have anything like that to sign your sister up for! The savings are awesome! Ohhhh, and don't forget to get her a mesh teether- you can put in bits of banana, fruits, carrots...etc- it's really neat- and it prevents choking once the baby starts to sample solid foods! Target and Wal-mart sell them (under $5 for 2) - they're one of the best products i've found out there. Also, the Bordeux Butt Paste works really well for diaper rashes! Desatin Creamy is also really nice- you can find that at Target and Wal-Mart too! Also, don't worry about getting expensive wipes- it's better to go to some places like Sam's club or Costco and get the less expensive ones in bulk- they last forever and they have the same identical ingredients in them as the more expensive wipes do! Ewww, and if ya'll are gonna splurge, definitely get her a Pack-N-Play!!! They can serve as a bassinet, changing station, play pen, and infant bed, they also have storage, built in sounds and vibrations to sooth the infant, and a mobile- they can be found anywhere from $85- upward!!! They also have wheels on them so that the momma can move it from room to room which will come in handy when the baby arrives! Those are in my opinion one of the best new baby products on the market!!!! I'm so excited for you and your family! Also, if you buy any pacificers- make sure you check the stage on them- they have them for different stages as the babies teeth and gums develop- the first stage is 0-3 months i believe. There are some new ones out on the market that won't harm the babies gums and can acutally help gum development...also, be sure to get the clips for them as well- one end attaches to the pacifier and one end attatches to the baby's top..they can also be used to hold teething toys in place as well- stock up on those, they are wonderufl! Congradulations- you're going to be a great aunt!!!! I have 8 nieces and nephews and 2 great nieces- being an aunt is one of the best gifts you could ever be given in life!!!
Have fun shopping!
-oh and the little einstein products are definitely a great idea!!! They really help as far as motor skills and mental development go! They have a huge line of things from cd's to toys- i've found that the developmental toys are always a favorite among babies. Also, they help with hand-eye cordination and can of great use when the baby starts tummy time!