Cycle and storage of kids' clothing that they've grown out of actually starts upstairs. I'll always recommend keeping an empty bin with a lid upstairs in a kids' area that the clothes are being quickly grown out of. That bin can be full. You take it right downstairs when you get down to the storage room and you have a place for your bins.
There's a few things that I'll always recommend. One rather than just putting whose clothes they are, separate them by size. So if you can break it down to 18 to 24, 6 to 12 months. It will be helpful if it's girl, versus if it's boy, that might be helpful as well. The extra items, the specialty items, that means shoes, outerwear. Put those someplace different. Don't bury those in a bin full of clothes. When you are looking to find those things, there's no reason to go through a ton of bins of clothing to find those burp cloths, sleep sacks, those are specialty items. You can group those all together and you'll be so happy later that you took the time to organize them correctly.