Webhooks are essentially a communication method in which a source application automatically sends data to a destination application when a specific event occurs. This itself is free of charge; it is simply an HTTP request sent from one server to another.
Although webhook technology is free by itself, there may be indirect costs:
1. Server infrastructure: To receive webhooks, you need a server that is constantly available. If you host it yourself, there are costs for hardware, maintenance and power.
2. Cloud services: Many companies use cloud services such as AWS, Google Cloud or Azure to process webhooks. These services charge for computing power, data processing and data storage.
3. API limits: Some platforms offer webhooks within their API packages. While basic implementations are often free, costs may come with higher volumes or advanced features.
4. Development costs: Setting up and maintaining a Webhook infrastructure requires technical knowledge and development time.
Webhooks are a cost-effective way to integrate systems, especially compared to alternatives such as continuous polling (where systems continuously check with each other for updates). At low to moderate volumes, the cost impact is minimal. For very high volumes, it may be prudent to calculate indirect costs and compare with alternative solutions.
Good news for users of popular eCommerce platforms: if you use AdPage for your Shopify, WooCommerce or Magento webshop, the AdPage webhooks for measuring purchases are already included in your server subscription fee. So you don't have to worry about additional costs for this essential functionality. AdPage therefore deals with the above four components that may incur costs.
The utility of a webhook is the automatic exchange of data between different systems in real-time. A webhook acts as a digital messenger that takes immediate action when something happens, without someone having to look at it manually. Think of instant notification of payments, updating inventory or synchronizing data between websites and apps. This makes your systems more efficient and reliable.
For eCommerce webshops on Shopify, Magento or WooCommerce, this allows you to measure all your purchases for analytical or marketing purposes. This cannot be done through standard Server-Side Tagging or other tracking capabilities without webhooks because visitors do not always return to the thank you page on your main domain, or open the thank you page in the wrong browser.
Webhooks can be received via your own Web servers, cloud services such as AWS Lambda, integration platforms such as Zapier, or within AdPage server containers that are specifically set up to securely process, store and forward Webhooks to other systems within your data infrastructure.
A server for webhooks costs between €5 and €50 per month, depending on your needs. For small volumes, a simple VPS (€5-€10) is sufficient. For larger volumes or more complex processing, costs run to €20-€50. For specific AdPage server solutions to set up webhooks for your Shopify, WooCommerce or Magento webshop, you can find current prices on AdPage's pricing page.
A webhook is not the same as an API, but they are related. An API is an interface that systems use to communicate with each other on demand (pull method). A webhook works the other way around: it automatically sends data when an event occurs (push method). You could say that a webhook is part of the API ecosystem, but with a specific function. Whereas an API requires you to actively request data, a webhook automatically brings the information to you as soon as something relevant happens.