Packet dropping IS how you shape bandwidth. It means your client is sending too fast so you are dropping to throttle him. You WANT dropped packets. Don't change the queue size.
First , you queue the packets before dropping them, that's what the limit is there for.
If the queue is too big, you get a higher latency, if it's too small you get a high rate of packet loss
Personally, I would try to solve this via trial and error
If the default 50KiB aren't sufficient and you get a high rate of packetloss, you should consider raising your limit (and total-limit based on your network ofc)
That's at least my understanding