I recently ordered two dresses and a fullness slip for my dd from mydressuptrunk.com (mentioned by a pp). I love the dresses! They don't have buttons or velcro...they just slip over the head. They fold up very small which makes them easy to pack and carry in a bag around the park. But when they are being worn, they are adorable. They are very soft--not itchy at all. And this thread reminds me that I need to update one I posted a while ago about this very thing. I told one mom on there that I would give her my opinion of the dresses once my order arrived. I'll try to find that and bump it up for you. It may be helpful in your decision making.
I've never looked at the Little Dressup Shop site before tonight (thanks pp for posting about it) and they do have a lot of cute things, but many of their dresses are the exact ones that My Dressup Trunk sells for several dollars cheaper! Little Dressup Shop had some different things, too. So it may all depend on what you're wanting to order. For example, I don't remember seeing the same Sleeping Beauty dress on My Dressup Trunk's site. They had a generic pink princess, but the SB dress on Little Dressup Shop looks more authentic to me. Also, it's important to note that Little Dressup Shop advertises free shipping on their site. I didn't click on anything to get the details, but that's worth looking into. However, my shipping from My Dressup Trunk was only $4 for two dresses, a slip, and the Snow White cape. (They mysteriously gave me a 50% shipping discount, but even if I had paid the full $8 I still would've come out ahead by buying from them since they were several dollars cheaper per dress.) Anyway, hope that all makes sense. Good luck finding what you're looking for!