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In this video tutorial, the concept of reducing image size without losing quality is explained. The tutorial shows a method to easily edit and crop photos without using Photoshop or installing any app on your PC. It is emphasized that government websites accept files between 10 KB and 20 KB for uploading, making it important to reduce file size without losing quality. A simple method is demonstrated using the online editor Photopia, which can be accessed on both Mac and Windows PCs. This online editor allows users to edit, crop, and paste photos easily.