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You trade off size and compression.
For instance a 968x648 image contains 1/16 of the pixels of a 3872x2592 image (the native resolution of my a200) but is fine or even overkill for most web purposes.
Compressing them both to the same size requires more butchery of the large image than the small. Downsizing the image then compressing the result does less damage than just compressing.
Or at least that's the way it works for me.
You could try PNG, but the images will be bigger.
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