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Sponsored Search Smacking us on Shipping

So I list an item for $26.99 with free ship and sponsored search costs me $2.51. Actual ship on this item is $8.

If I list same item for $18.99 and charge the customer $8 ship the sponsored search is $1.76. 

 Ebay encouraging us to Offer free ship, but penalizing us if we do so. Man the pie is getting small. We are already paying the FVF on the shipping and I understand the reasoning for this, but seems senseless to pay an additional $.75 on the ship again.

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Sponsored Search Smacking us on Shipping

how would you suggest ebay not charge someone FVF on free shipping?

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Sponsored Search Smacking us on Shipping

Not sure, but seems counter productive for us to utilize sponsored search on free ship items. Weight, dimensions, and service are on every listing. They know how much shipping costs.
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