You need to make sure you reduce the dimensions of the photo first - so reduce the longest width to 800-900px first, and then save as jpeg.
Depending on the image, you may need to reduce the dimensions to 700px wide to still be able to save as 80-90% jpeg quality to be under 200kb.
If you try and upload a larger than 200kb image to IceInSpace, it will automatically reduce the quality to get it under - and so your image will show more compression artifacts.
So it's best to control the process yourself.
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