Design and Print Online allows you to check or uncheck lock aspect ratio when you add images or objects.
If you check lock aspect ratio, this means that if you change one dimension (height or width) of the picture or object, the other dimension will automatically change to maintain the shape and proportions of the object instead of stretching it out. See examples below:
Lock Aspect Ratio Checked:
Lock Aspect Ratio Unchecked (Stretches the Image):