1. If you buy a new set of ornaments, keep the boxes that they come in with. Manufacturers know what would protect their merchandise best, so they line their boxes with bubble wrap, or they make it into certain shapes. This is especially true for online retailers who take extra precautions in their packaging to minimize the chance of damage while shipping. Hence this is also the best way to store your ornaments.
2. Do not remove the hooks and the strings you used this year. Pack your Christmas tree ornaments with the hooks inserted. This would lessen the work you have to do the next time you hang these ornaments. Besides, taking out the hooks and strings and putting them together is one way to end up with a tangled mess next year.
3. Buy a storage bin. You might want to buy a storage bin for your ornaments. Pick one that is bigger than what you need now to make room for ornaments you're going to buy or for those ornaments that people gift you with. Choose an airtight storage bin as this will protect your ornaments better.
4. Throw away broken ornaments. This does not need further explanation, except that a lot of people hang on to broken ornaments for sentimental reasons.
5. Hold on to ornaments that come in different colors, sizes and shapes. You may have bought a set of ornaments before and over the years some parts of this set has been lost, broken or thrown out. Do keep the good ones that are left. You can still use these for your wreaths during the next Christmas season. Or you could go with a more festive and varied ornament bowl. You can also use smaller orphan ornaments as a pretty addition to your gift wrapping.