Yes! The money you make from your hobby is considered to be business income. You may not consider that you actually run a business, but you do according to the government. The Canada Revenue Agency defines a business as "any activity that you do for profit".
They go on to say that the definition of business includes a profession, a calling, a trade, a manufacture, an adventure or concern in the way of trade, and an undertaking of any kind.
As you are selling a product or services you are definitely conducting an activity for profit. The Canada Revenue Agency doesn't care that you are only selling "a few" or that you consider your activity to be a hobby.
You must report the money you make from your hobby as business income by completing Form T2125, (Statement of Business or Professional Activities) which is included with the T1 income tax return package.
