My daughter was 2 months for her first Christmas, so I decided to start a storybook collection. I went with the Disney Storybook Collections, since they're affordable, filled with colorful pictures, nicely made, and highly available. The first one we got was the Nursery Rhymes collection (it's the most "babyish" of all the books), followed by "Classic Stories", "Princess Stories", and "Happily Ever After" stories. They have lots of gender-neutral selections too. Now, at 4, they are still her favorite books and we read from them all the time. I will say, just to warn you, that the stories are a bit long for toddlers, but the nursery rhyme book was a big hit until she could handle the longer stories.
Do an Amazon search for "Disney Storybook Collection" and you'll find lots of titles, many with free shipping, for about $11 each. Hope your son has a great first Christmas!
-K.