Your e-commerce glossary

All the terms you need to know to succeed in modern e-commerce, explained simply and clearly.

Back to Glossary

What is Webhook?

A webhook sends real-time data between apps when an event occurs, unlike APIs that pull data periodically, making it efficient for instant integrations.

Explanation

A webhook is essentially an HTTP callback or push API that allows an application to send data to a third-party service in real-time whenever a specific event occurs. It is used to automate processes and enable real-time updates between systems. For example, a webhook can notify a payment processor when a transaction has been completed, or inform an inventory management system when an order is placed.

Importance

  • Real-Time Updates: Webhooks allow for immediate updates, enabling faster and more efficient workflows compared to polling for data at regular intervals.
  • Automation: Webhooks are often used to automate tasks such as sending confirmation emails, updating inventory systems, or triggering workflows in other applications based on specific events.
  • Reduced Server Load: Since data is pushed when an event occurs, there’s no need for constant API requests, which can help reduce server load and improve performance.
  • Improved Efficiency: Webhooks streamline communication between systems, reducing the need for manual intervention and speeding up operations.
  • Event-Driven Architecture: Webhooks are a key component of event-driven architectures, where actions are triggered automatically based on predefined events.

How It Works

  • Webhook Creation: The first step is to create a webhook in the source application. This involves specifying the event that should trigger the webhook and the URL of the target application (i.e., where the data should be sent).
  • Event Occurrence: When the defined event happens in the source application (e.g., a payment is processed, a new order is placed, etc.), the webhook is triggered.
  • Data Transmission: The webhook sends an HTTP request (usually a POST request) to the target URL with the relevant data about the event, often in JSON or XML format.
  • Handling Data: The receiving system (target application) processes the data from the webhook, triggering actions such as updating a database, sending notifications, or performing other tasks based on the received information.
  • Response: The target system typically sends a response to acknowledge receipt of the data, ensuring the webhook was successful.

Benefits

  • Instant Data Transfer: Webhooks provide real-time data transfer, which is beneficial for use cases like payment confirmations, order updates, and inventory tracking.
  • Efficiency: Webhooks reduce the need for constant polling, which can be resource-intensive and lead to delayed or missed updates.
  • Easy Integration: Setting up webhooks often requires minimal configuration, making it easy to integrate with third-party applications and services.
  • Better Automation: Webhooks enable seamless automation, reducing the need for manual data entry or intervention across systems.
  • Cost-Effective: By eliminating the need for continuous API requests, webhooks can reduce the overall cost of managing API integrations.