You are responsible that an item arrives undamaged and certainly, tracking is not unusual.
What is reasonable is the actual cost of any box and insert(s) for materials, and the actual postage cost. If shipping is $12, as long as you let the buyer know before they buy the product, then $12 is reasonable. You can have a base shipping cost, and a customer can choose upgrade. A customer will see the cost as the total cost anyway, but you can note that shipping charges are not refundable when the item is received as described. It is not good to fold shipping cost into item costs unless you are a large business and can afford some extra losses for dissatisfied customers.
In the USA, you can buy 2 gallon ziploc plastic bags to be able to seal a shirt from water.
You can either buy shipping boxes or use post office or UPS provided free boxes in priority shipping. You can include the cost of the shipping box. If international, charges are higher.
If your delivered price is not competitive, you cannot be in business.
Some people offer free shipping, but obviously the cost is built into the price of the item. It is refunds that becomes a seller's problem. It is one reason I advise people to use caution in buying from China sources. Return shipping is high, and they lie about refunds; and of course, all known brand name items are counterfeit.
Find a lowest cost shipping method, note the delivery time in truth, and offer upgrades.
Charge the actual shipping, but make it known as early as possible. You can discount multiple item purchases done at the same time.
You're responsible and I don't know I think there's website that tell you that info.
I know it varies on size, but let's say shipping from usps is 12$. I charge 12$ for a shirt. Would 7$ for shipping be reasonable? I don't want to screw my customers.