♦Before you put your holiday lights into storage containers, wrap them around
a light reel.
You'll have no tangles and they'll take less space. I have used light wrap
reels, such as Wrap 'N Roll Light Reel, for several years and love them. I use
this one in the picture. I have three of them and I just stack them on their
sides in a plastic storage container, one on top of the other (no problems so
far and I've done this for years).

Just stack the reels with lights wrapped around them on their sides in your
storage container. Make sure you add some cushion material around the
stack, such as newspaper, to ensure they don't slide around in the tote. Mine
always stay safe and secure this way. I use paper towels to protect or cushion
items and fill in spaces in the container. I reuse the same paper towels year
after year since I just leave them in the empty storage boxes until it's time to
put away the ornaments and lights again. Since I have so many of those air packs
leftover from items shipped to me throughout the year, I may start using those
instead to cushion things and fill in gaps in the storage boxes to keep things
from sliding around.
♦Another product that you can wrap
holiday lights around is also used for extension cords. In fact, you can mix and
match extension cord holders and light reels--it's the same wind around concept.
Look in the hardware accessory section (or garden section) of retail stores year-round.
During the holidays, look in the holiday ornament section of stores. This light
strand holder
pictured below is the
Cord Wind-Up for Lights - Set of 2
from Organize-Everything:

♦If you're really frugal and creative, try wrapping your light sets around
empty gift wrap rolls. I've never done this but I've heard of others who do. Then
perhaps store them vertically in a tall box or in a plastic
vertical container made for storing gift wrap or blueprints.