Double click on your photo.
Set the RIGHT SIDE spacing to 40. No need to write 'px' that came up automatically after being saved.
You can make bottom spacing too for the photo.
Make sure photo alignment is on the left. And of course make sure you check 'Wrap text around image'.
I have to say it's extremely fiddly and tedious playing around with inserting an image, trying to wrap text around it, text going all over the place, white spaces galore where we don't need them! And we shouldn't have to be inserting BR codes just to resolve white spaces (which is not a complete solution anyway). If I wanted to use HTML I would have been a coder! This is taking far too much time away from doing my actual business. If anyone has used squarespace, you will see how these things are so much easier. You type up your blog, insert image and the text beautifully wraps itself around it. Simple!
Thank you all for posting these solutions, unfortunately I'm continuously trying to fix this problem with no avail. My text does not wrap around (even if I check yes in edit image). It will have one line, but not the whole paragraph or section. here is what I'm getting vs. what I want to accomplish. Thanks for your help!
Here are the steps to wrap text around an image:
If you still need help, check out the screenshots here.
Best of luck with your shop