What are webhooks?

Webhooks are automated messages sent by an application when a specific event occurs. They allow different systems to communicate directly with each other without manual intervention. A webhook is essentially an HTTP callback: an HTTP POST request that is automatically sent to a preconfigured URL when a specific event occurs. These events could include, for example, a new order in an online store, a new contact form being filled out, a payment being processed, a change in inventory levels or an update in a CRM system. Webhooks are particularly useful when you want systems to respond automatically to events in other systems, without having to constantly check whether anything has changed.

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How does a webhook work?

The process of a webhook follows some basic steps:

1. First, configuration takes place. An application (the "sender") allows you to set up webhooks. You specify the URL where the webhooks/your messages should be sent and select which events should trigger a message.

2. Next is registration. You register the webhook by saving these settings in the sending application.

3. Next is event detection. When a relevant event occurs in the sending application, the webhook is triggered.

4. Then comes the sending. The application automatically sends an HTTP POST request to the configured URL with information about the event in JSON or XML format.

5. This is followed by reception and processing. The receiving server (the "receiver") receives the message and processes the data according to its own logic.

6. Finally, there is confirmation. The receiver usually returns an HTTP status code to confirm that the message was received.

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To illustrate, when a customer places an order in a Shopify shop, Shopify can send a webhook message to your own server with all the details of the order. Your server can then process this data, such as adding it to a CRM system or using it for conversion tracking. For more information on how webhooks work, please refer to the following article.

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Is a webhook free?

The technology behind webhooks is free to use, the concept is open and there are no licensing fees. It is simply a communication method that uses standard HTTP protocols. However, there may be costs associated with implementing and developing webhook functionality. The server infrastructure required to process webhooks and data traffic and server time for large volumes of webhook messages can also incur costs. Most platforms and services such as Shopify, WooCommerce, Stripe, PayPal, and GitHub offer webhooks as part of their service at no additional cost. However, some services may place limits on the number of webhooks or the volume of messages within certain subscriptions. Read more about the cost of webhooks.

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Is a webhook an API?

Webhooks and APIs are related concepts, but work substantially differently. An API (Application Programming Interface) works on the "pull" principle. Your system actively requests data. You must regularly check for new information. You initiate the communication. A webhook, on the other hand, works on the "push" principle. Data is sent automatically when something happens. You don't have to check for new information. The external application initiates the communication. A webhook can be thought of as a "reverse API," or a specific type of API implementation where the direction of communication is reversed. Instead of you constantly asking "Is there something new?", the webhook tells you "Hey, something new happened!". Read more about the difference between webhooks and an API here.

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Webhooks for conversion tracking at AdPage

At AdPage, we use webhooks specifically for conversion tracking in e-commerce. We deploy webhooks to send an HTTP request from the backend of an online store to a server container at the time an order is created. This is a significant improvement over traditional measurement methods that rely on loading the thank-you page. Some competitors set up webhooks from this thank-you page, but this and standard tracking through a webshop's frontend has significant drawbacks:

1. First, there are measurement problems. Not all users land on the thank you page, so you can't measure purchase conversion.

2. In addition, there are attribution issues. Properly attributing conversions to the right user and source is tricky when measuring via the thank you page. Because if a visitor goes through the entire customer journey in, say, the Google Chrome browser and their payment app opens the default browser, which may be different from the Google Chrome browser, the purchase conversion will not be assigned to the correct original source.

3. Finally, there are delays. The thank you page does not load until the order is fully processed. Also, you cannot measure the purchase until the entire page and all scripts are loaded.

By implementing webhooks directly from the backend, we can record every order regardless of user behavior after the order. We receive all relevant order data for accurate attribution and get real-time information on conversions. Even if your customer has declined the cookies, you can still forward the eCommerce data to GA4 but will not include PII (personally identifiable information). For more information on AdPage webhooks, please refer to this blog article.