There's been loads of excitement surrounding the launch of Amazon in Australia on Tuesday, but one e-tailer isn't coming to the party.

Australia's ecommerce giant, eBay, should be scared. Very scared. Because the world's online retail behemoth, Amazon, is going to dominate in Australia and it's going to hurt eBay's bottom line.

In fact, it could even spell the end of eBay as we know it. Just look at the success of Netflix, now worth a net capitalisation of $US61.6 billion ($80.4 billion). It was a pioneer of media streaming, wiping out other entertainment companies like Blockbuster, which went bust in 2013, despite a handful of stores still operating.

Another example is when Facebook came onto the scene, it eventually took out the once-popular MySpace. In 2007, it was reported that MySpace had 300 million users and received more page views than Google and Yahoo. By 2008, it was overtaken by Facebook, which has since shot up to over 2 billion monthly active users this year.

EBay has enjoyed 18 years of retail bliss in Australia with unrivalled competition. But this is all about to change with the launch on Tuesday of the new kid on the block, Amazon.

Why? Because it costs a lot less to sell stuff on Amazon. Amazon's model is the same as it uses in other markets: relatively free for merchants. For a quick comparison, you're looking at $39.99 per month to sell an unlimited number of items (over 40) or 99¢ per item sold, plus additional costs. EBay's basic fees hit you with 10 per cent per item, up to $750, plus other fees.

Let's say you want to sell a one-off item, a mountain bike, for $1000. It will cost you from 99¢ on Amazon, compared to $100 on eBay. I know where I'd list my bike.

For a business selling more than 50 items per month, say 100 items at $50 per month, after one year it will cost you a total of $479.88 for Amazon's monthly subscription, compared to $6000 for eBay. This doesn't include the other costs and services they both might charge.

This is great news for sellers. EBay reported 40,000 small Australian businesses trading on the site and 11 million unique visitors every month. There will be a mass exodus of small businesses switching to Amazon, drawn to the cheaper prices.

While there's no geographical revenue data available for these big companies (they aren't obliged to report it publicly) we can see that Amazon's global revenue is much greater than eBay's. In fact, last year Amazon's net revenue totalled $US136 billion, compared to eBay's $US9 billion. Amazon's share price is about 32 times higher than eBay's (November 22 closing at $35.93 for eBay verses $1156 for Amazon).

Amazon experienced massive year-on-year growth in 2010 (40 per cent) and 2011 (41 per cent), which was at the same time it launched in Italy (2010) and Spain (2011). EBay on the other hand, hit a low of 5 per cent growth in 2010, and 27 per cent in 2011, and was already operating in Italy since 2001. EBay didn't launch in Spain until 2014.

Between 2006 and 2016, eBay enjoyed its biggest year-on-year growth in 2006, at 31 per cent, despite earning almost half the revenue of Amazon ($US10.71 billion for Amazon versus $US5.97 billion for eBay). In that same year, Amazon's growth was only 26 per cent. However, following the launch of Amazon Prime in 2005, Amazon's year-on-year growth overtook eBay's. Since then, eBay hasn't reached higher growth.

It's clear that Amazon is miles ahead of the game compared to eBay and this trend is likely to happen in Australia.

Amazon will hit our shores with a bang. It's undercutting eBay, providing a cheaper model for merchants and offering heavy discounts for consumers to attract the market. Merchants will move their business over to Amazon over time, since they offer so many logistics and payments services. For instance, Fulfillment by Amazon is a service where you can send your inventory in bulk to Amazon and they will manage the shipping and fulfillment logistics.

Many analysts also agree Amazon will take eBay market share in Australia. eBay is estimated to make up 4.64 per cent of Australia's total retail trade. That works out to be an estimated $6.54 billion in eBay revenue in the past 12 months to September 2017, which is 53 per cent of total online non-food retail sales in Australia.

In the US, Amazon's market share is 44 per cent of total online retail trade. That's because as soon as you buy once from Amazon you keep buying because it's so convenient. Consumers become addicted to one-click buying and its great customer service and delivery. This is especially when the customer pays a subscription for fast and unlimited delivery services with Amazon Prime and Prime Now. EBay won't be able to compete at that level.

EBay's coming of age in Australia will be a rude shock into adulthood.