Every shipper does.
It may be called a service fee (Canada Post $10) or a customs brokerage fee (couriers $25 and up) or an import fee ($5 Global Shipping Program)
That sounds like the Global Shipping Program.
Your item may not be dutiable, but Canada will still want the sales tax. The rest goes to PitneyBowes who run the program for eBay, to transport the item from their plant in Kentucky to Canada and your house.
The selling will state:
Customs services and international tracking provided
if it is GSP