I had eye problems when I tried to read on a phone and I gave up trying. I haven't had any problems reading on e-ink though, either with or without a built-in light.
Others have already suggested the usual things - experiment with different font styles, font size, line spacing, light color and intensity.
The only other thing I can think of is to let someone else try your ereader, and/or you try borrowing another ereader from someone else, to rule out the possibility that your ereader is defective in some way.
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