Yes, you can merge images into a document.
URL's that are tagged and end in .jpg, .gif, .jpeg and .png on your data source spreadsheet will be converted to images in your generated documents.
Links should finish with the image extension and nothing more
1.Right click on a web image then choose "Copy Image Address".
Use web hosted image URLs. If you need to resize your image we recommend you use a site like imgur
2. Paste this link under the column to be tagged.
3. Generate your documents.