An image in Figma is just a Fill type. This can be applied to a frame, a rectangle, or really any other shape. Creating a component would be helpful if you plan on reusing the parent element that the image belongs to. For example a card component could have a rectangle with an image fill.

Otherwise if it’s just the image that you want to apply to other objects I’d recommend turning it into a style.

Hope that makes sense. Happy to dive in deeper here though 🙂

Thanks a lot @Josh .