Simply drag an image component into the desired email to add the photo. You will be able to upload a JPG or PNG to your templates.
The maximum size of the images is 600px wide and has to be less than 1MB in size.
You will also be able to link them direct with a URL link to add another clickable section to the your store.
FRIENDLY REMINDER: You will need to publish your updated email templates in Shopify again for the images to appear.
Here is a video on how to add images to your email templates: