There are 5 things to set up
Your Shop Name
Ebids Category for your item
Ebids Sub Category
Parent Category (this is one that you set up to suit your own listings)
Sub Category
Of these as far as I know they are all compulsory except the last one (I have not used this)
So, when setting up your shop in "My Ebid Stores" the Shop name should be your shop name - NOT the parent category.
Then when you edit your items the drop down lists will appear and be self explanatory.
Julie