The consequences of not selling on ebay? You don't make any money, for starters. But right now you want your fees back. Now that you've refunded, you can ask the buyer to accept a cancellation. When a buyer accepts a cancellation, or ignores it until it expires in a week, you get your fees back. The following link tells you all about cancellations:
http://pages.ebay.ca/help/sell/cancel-transaction-process.html
If you need to request a refund, there is a link for that at the bottom. It looks like this:
http://pages.ebay.ca/help/sell/refunds.html
And you can always call ebay via the Customer Support link at the top right corner of the page here. They're usually pretty good at sorting things out over the phone.