I wrap my items in pretty tissue paper (or according to the holiday coming up), then bubble wrap to protect it (I wrap my knitted items too), and then place it in a decorative treat bag or decorative sandwich bag. Some of you might think, "Ew, a sandwich bag?!" C'mon guys, they're not used sandwich bags. lol They're bags with cute designs (and they're zipper bags too, keeping out smoke smells and such).
Right now, I'm whipping out my Halloween decorations for my packaging! :D Before I know it, I'll be doing the same thing with Christmas packaging too. XD