Large photos slow down websites and fail upload limits. Two settings do most of the work: quality controls how much detail the encoder discards, and max width reduces the number of pixels. Together they often shrink a camera photo from several megabytes to a few hundred kilobytes.
WebP usually gives the smallest file at a given quality, so it is the default. Choose JPEG when the destination only accepts JPEG. Compression is lossy, so keep the original file if you may need full quality later.
The result shows the original size, the new size and the percentage change. If the new file is larger, the tool says so, which usually means the image was already well compressed or the quality is set too high.