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The phrase "a smaller package" is correct and usable in written English.
You can use it when referring to an item or product that is reduced in size compared to a standard or previous version.
Example: "The new model comes in a smaller package, making it easier to store and transport."
Alternatives: "a compact version" or "a reduced size".
Exact(54)
A smaller package of cuts is also being considered.
Administration officials vowed to push for a smaller package in the conference committee.
The wild card in the electronic-payment competition against smart cards comes in a smaller package.
"But now you can get the same thing in a smaller package.
"It's a smaller package," said Tim Stoehr, Ford's commercial truck marketing manager.
But House Republicans were able to muster backing only for a smaller package, and prospects in the Senate were unclear.
Similar(6)
Mr. Bloomberg handed out tissues from a small package.
"I'm, like, turbocharged in a small package".
Credit-card sized board for embedded applications that need a big punch in a small package.
ASTERIA's success demonstrates that CubeSats can perform big science in a small package.
After they left Freddy went into a drugstore & came out with a small package.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com