A webhook is a way for applications to send real-time data to each other automatically when specific events happen. Unlike traditional APIs, which require regular requests for information, webhooks are event-driven, meaning data is "pushed" to the receiving application as soon as an event occurs. This approach saves time, improves data freshness, and reduces server load by delivering only the necessary information.
For example, when someone completes a purchase on an e-commerce site, a webhook can instantly notify other systems to update inventory, send order confirmations, or initiate shipping. These lightweight, efficient notifications have made webhooks essential for seamless, real-time communication across applications.
Webhooks vs. APIs
While webhooks and APIs facilitate data exchange between systems, they function differently. Here’s a quick comparison:
| Feature | Webhooks | APIs |
|---|---|---|
| Communication | Event-driven (pushed on occurrence) | Request-driven (pulled by request) |
| Data Freshness | Real-time | On-demand |
| Setup Requirements | Requires endpoint setup | Requires regular polling or request setup |
| Typical Use Cases | Notifications, alerts, updates | Data retrieval, control over data operations |
| Efficiency | High, minimal server load | Moderate, dependent on frequency of requests |
API Polling vs. Webhooks
| Webhooks | Polling | |
|---|---|---|
| Compatibility with Severless | Highly efficient, triggered only when needed | Less efficient due to frequent requests |
| Impact of Rate Limits | Not affected by rate limits | Subject to rate limits, affecting performance |
| Update Mode | Automatic, real-time updates on event trigger | Requires manual polling for new data |
Webhook Use Cases Across Industries
E-commerce
Order Notifications:Send order confirmations, update inventory, or alert teams to new purchases as soon as they happen.
Shipping Updates:Notify customers and logistics platforms in real time when an order is shipped or delivered.
Finance
Transactions Alerts:Banks and financial platforms can alert users of transactions, withdrawals, or unusual activity instantly.
Account Changes:Notify users or backend systems whenever an account detail is updated, improving security and user experience.
Healthcare
Appointment Reminders:Send automated notifications to patients and practitioners for scheduled appointments.
Patient Data Update:Alert healthcare providers when patient records are updated, keeping teams informed with real-time data.
SaaS & Technology platforms
User Actions:Track user activities, such as login events or file uploads, enabling responsive notifications and audit trails.
Subscription Events:Notify billing systems or CRMs of user signups, renewals, or cancellations for streamlined account management.
Developer Platforms
Build and Deployment Notifications:Trigger automatic builds or deployments as soon as code is pushed, saving developers manual steps.
Error Tracking and Incident Alerts:Instantly notify teams when critical errors or performance issues arise for faster response times.
Webhooks Best Practices
If you’re an engineering leader and would like to learn more about implementing webhook best practises. We’ve written extensively on the topic, you can follow the guides below to learn more.If you’re an engineering leader and would like to learn more about implementing webhook best practises. We’ve written extensively on the topic, you can follow the guides below to learn more.