The arrival of the Internet has been seen to portend the rise of the virtual university, global competition, and the end of campus education. The emerging economics of electronic commerce (eCommerce) allows for a measured understanding of the implications of the new technologies for higher education and even how educational innovation should be focused. This paper considers what constitutes eCommerce and why it matters. The forces at work in its uptake across the economy are examined, and the key concepts of transaction and organizational costs are defined and discussed, as are some possible economic and labor market effects of eCommerce. The lessons of all of this for higher education are discussed, and some concluding observations are offered. Four lessons emerge: (1) campus education is probably a normal good in that demand for it increases with income; (2) eCommerce alone does not provide grounds for significant changes to university offerings; (3) new partnerships and delivery mechanisms will emerge but not dominate; and (4) there will be pressure from a variety of sources to enhance campus education in light of the new information technologies and practices. (Author/MES)