How long does the game take to purge those bags so more items can be sold to them? And does it exist addons which can purge the vendor’s bags automatically?
Would also like to know if there is some way to obtain more/bigger bags at lower levels, below 30.
Vendor have two tabs at the bottom of their forms - one to Sell to them; the other to Buyback from them.
You can sell as many items as you like to a vendor in one sesssion, but if you have opened the Buyback tab, he won’t accept anything more from you.
So just switch from to the Buyback tab back to the normal tab, and you can keep selling.
You can buy bags up to 32 slots, for gold, from the Auction House. A lot of gold, so for a new player they won’t be affordable at low levels unless you buy gold.
Personally, I buy Netherweave Bags (16-slot) for my low-level toons. They typically cost about 10 gold at the AH.
There are a couple of other methods, for people really on a budget. When Darkmoon Faire is available, which it won’t be for a couple more weeks I think, you can buy
with the prize from winning one game.
You can also get a City Satchel from the quartermaster of any of the early factions when you reach Revered rep with that faction. For example:
Here are some other small bags available at low levels, from quests and things
You can get a 10-slot for w gold from a vendor:
Thanks Gráinne, helped a lot! 
Definately get those from the city faction rep vendors if you can’t afford to buy others. Not sure if it still does but it used to drop 10 slot bags from the horses in Shadowfang Keep.
Also Lady Anaconda in Wailing Caverns. I was amazed to get that when I was new to the game. A TEN-SLOT bag seemed like the Biggest Bag Ev-ah!
But those aren’t reliable sources, especially now that scaling precludes farming. 
It’s a pity you are not on a realm I am on otherwise I would send you bags. Also do not sell green items to the vendor, sell them on the AH.
I’m about to give up selling green and better items at AH as no one wants them anyway. I’m not changing the default starting prices the items have as I think that price is fair. Not too expensive, and still not too cheap to not be worth the bother of travelling to AH. Increasing the duration to 48 hours increases the deposit, and do not grants any increased interest of the respective items.
Majority of the items you gather during leveling are trash indeed.
Only very few items are highly looked after for transmog purposes, and easy check is through;
https://theunderminejournal.com/#eu/turalyon
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