DSR's Shipping & Handling Charges

In my experience I don't like the DSR's but I can see how it could be useful to help keep sellers on their toes. However, I think Shipping & Handling needs to be reformed. I usually don't charge enough to cover the shipping charges once you factor in paying 3.5% to Paypal and the material used to ship the items. The flaw is that I don't think buyers understand how expensive it is now to ship an item. I usually get marked down on the DSR's for my shipping charges. This is funny because I lose money on shipping. That is my gripe.