Most good stories start with a fundamental list of ingredients: the initial situation, conflict, complication, climax, suspense, denouement, and conclusion. Great writers sometimes shake up the recipe and add some spice.
Exposition (Initial Situation)
Keeping It Real
The Velveteen Rabbit is a stuffed bunny who comes to live with the Boy on Christmas morning. The Rabbit meets the other toys in the nursery and finds out from the Skin Horse what it takes to become Real. It's all very mysterious, this "becoming Real" process.
Rising Action (Conflict, Complication)
Boy and Bunny Besties
One night, the Velveteen Rabbit winds up sleeping in the Boy's bed and becomes his favorite toy. They slowly grow into best buddies and they have tons of good times together. Eventually, the Rabbit hears the Boy say he's Real.
Climax (Crisis, Turning Point)
He Gives Me (Scarlet) Fever
The Boy gets sick with scarlet fever and the Velveteen Rabbit stays by his side throughout his illness. Luckily, the Boy recovers but then the Rabbit learns that all the Boy's toys will need to be burned. That means him.
Falling Action
Burn, Bunny, Burn
The Velveteen Rabbit waits to be thrown on the bonfire and looks back at his life as a stuffed animal. What was the point of being Real if it was all gonna go up in flames like this in the end? This makes the Rabbit so sad he starts to cry.
Resolution (Denouement)
Fair Fairy Magic
The Rabbit's tear summons a Fairy who tells the Rabbit that she will make him Real to everyone now. She kisses him and turns him into a wild rabbit. The Rabbit is then free to frolic and play with the other wild rabbits in the woods behind the Boy's house. He runs into the Boy months later and the kid even recognizes him, but doesn't realize that his old toy bunny has become a Real rabbit at last.