At step 2, Primary Category shows only categories that fit the listing type you chose at step 1 — the help text says so: “Showing categories for the selected listing type.”
How to choose
- Think about what a customer would call you, not your legal classification.
- Choose the most specific category that is still true.
- If two fit, choose the one that brings in most of your income.
Wrong category is one of the most common reasons a listing gets few views: people browsing your real category never see you.
You can change it later by editing the listing.