Etsy's Offsite Ads Fees Robbed My Sale Unfairly

This just pissed me off so I need to rant.

Background: I have over 10k in sales so I can't opt out of Offsite Ads. I am in the US.

A customer purchased 2 vintage figurines at $12.00 each. They are in the UK. The customer upgraded to expedited shipping via International Priority Mail.

Here's the breakdown of the order:

$24.00 merchandise
$67.17 International Priority Mail Shipping
$18.23 VAT + Taxes
_________

$109.40 Total

$10.94 Ad Fee (Based on 12% of the TOTAL SALE)

Because the customer upgraded the shipping, I was hit with a $10.94 ad fee, plus there were additional fees of $9.86 for listing and transaction fees ($4.37 of that was from the 6.5% transaction fee on the shipping price).

That means on a $24.00 sale, I made a profit of $3.20

Because of the shipping upgrade. WTF?

I get the 12% for merchandise, but why do they include the shipping? That seems criminal to me. Especially if your shipping is set up for the total weight of the package. How do they expect sellers to keep using their services if their business model is to take all of the profits? It's crazy!

If this is the case I will no longer be able to ship international. This totally sucks.