This is basically what my family and friends have going on right now, so I know it will work. We're constantly shipping boxes of cloths around to each other. Great idea.
Sharing clothing within an extended family is only to be expected. The dynamics change markedly when dealing with pre-owned clothes from random strangers however as plumgear will no doubt find out rather quickly. They do address the spills and stains issue up front but I think it will take a lot of work to get over the ewww factor.