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Yes, because you are filing the nonresident New York return and have the ebay business on your federal tax return, New York requires you to allocate the business income. Because New York uses your total income to determine the tax rate that is applies to New York state income, you must indicate zero business income.
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The business allocation is just for your business.
Do not include your employer's address. That is not your business. That's your employer's business.
The W-2 allocation is in the New York Income Allocation section. From you information, it appears you can allocate all wages to New York because you worked remotely for a New York employer and did not perform services in any other state for that employer.
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