A machine implemented method for transforming bidding with rebates and discounts in an online auction is described herein. In one embodiment, a method includes receiving a first bid from a first bidder and a second bid from a second bidder over a network, where at least one of a rebate and discount is offered with at least one of the first and second bids and the first and second bidders are seller bidders. In response, the method assigns a first value and a first unit of measurement for the first bid and a second value and second unit of measurement for the second bid using in part the at least one of a rebate and discount offered with at least one of the first and second bids, and transforms the first and second values to third and fourth values, respectively, having a standard unit of measurement, where the third and fourth values represent the first and second bids of the first and second bidders in view of the standard unit of measurement.