Keep alpha in PNG, WebP, or AVIF. Start lossless, then consider a smaller color palette or transparent WebP when the destination supports it.
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Compress PNG images
Keep transparency and choose lossless optimization or a smaller palette-based result.
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Why transparent PNG files can be large
PNG stores decoded pixels exactly. Soft shadows, noise, gradients, and partially transparent edges create more distinct data than a flat icon, so two images with the same dimensions can compress very differently.
Start with reversible savings
Lossless optimization can improve filtering and entropy coding without changing a pixel. Metadata removal may help too. If that is not enough, palette reduction works well for artwork with a limited set of colors but should be inspected around gradients.
Never flatten alpha by accident
JPEG has no alpha channel. Converting a transparent PNG to JPG requires a background color. Use WebP or AVIF when you need modern lossy compression and transparency together, and keep PNG when exact decoded pixels matter.