During feed processing, images must be stored on a non-password-protected web server so Amazon can retrieve them. Each image submitted must have a full URL, such as http://mystore.com/images/1234.jpg. Amazon cannot access images stored with a secured URL (https) so be sure to use http instead. Therefore, it is not possible to upload images from a local drive using the API directly.
As a possible solution, sign up for a free image bucket service and just upload your images there and supply the correct URLs Amazon needs (e.g. http://mystore.com/images/1234.jpg). A). After Amazon has the image, they store it locally so you can delete the image you have uploaded.