Three settings decide how small the file gets
The tool redraws your image on a canvas and re-encodes it. Size falls through the output format, the Quality slider and an optional cap on width and height.
Output format offers Keep original, JPEG or WebP, plus AVIF only if your browser can encode it. Quality runs from 10% to 100% and starts at 70%; it affects JPEG and WebP output. PNG is lossless, so the slider does nothing for a PNG that stays PNG. To shrink a PNG, tick 'Also cap maximum dimensions' and set Max width and Max height, or switch the format to WebP or JPEG. A result panel shows the percentage saved and the sizes before and after.