Where it says, Domestic: Included (in the shipping and handling cost)
Since it is set as required it is automatically including $3.50 into the shipping price of all the auctions (the actual shipping is set at $8.99, but it shows $12.49). When I look at my auctions in My eBay it shows shipping as $8.99 that is why I didn't catch it.
In addition I state there is no mandatory insurance and the ad also tells the shipping as $8.99.