Gift baskets are a popular gift option, especially during the holiday season. The key idea behind a gift basket is that you are giving someone several smaller gifts instead of one larger one. These small items are arranged in a container and the entire package is attractively wrapped in cellophane.

Gift baskets are almost always themed. There is the traditional fruit basket. Bath products are always popular, mainly scented soaps and lotions. Baskets can be tailored to the recipients' interests — books, paper and pens for a writer or new lipstick and nail polish colors for the make-up enthusiast. Gift baskets can be either highly personalized or generic enough that anyone would enjoy receiving them.

A gift basket doesn't even have to be a basket; any container will do. This can be a chance to really highlight the theme. A gift basket for a gardening enthusiast could consist of seed packets, a nice pair of work gloves and a new gardening tool inside a terra cotta pot or a watering can. For a movie fan, wrap a few DVDs and some microwave popcorn in a fun serving bowl. The best gift baskets are stored inside something that can be used long after the contents are gone.

There are three main types of gift baskets:

Pre-made - These gift baskets sit on the shelf already wrapped and ready to purchase. This is gift-giving at its easiest.

Created In-Store - Some stores and websites allow you to select the items you would like in your gift basket, and an employee will then arrange and wrap the assortment for you. This gives the basket a personal touch while still allowing for a more professional presentation.

Homemade - You buy the contents and wrap it yourself. You have total control over what you put in the basket and how it is presented. Unless you have practice, it may not have the crisp look of a pre-made basket, but its the thought that counts.

Whether you want to create a unique gift for your best friend or you just need something nice for your new neighbor, gift baskets are a fun and convenient choice.