What is a webhook?

A webhook is a mechanism for sending real-time data from one application to another. Webhooks are notification systems that send information automatically when something triggers a specific event.

In less technical terms, a webhook is like a friend who’s always sending you the latest news, but only when that news matters to you. Instead of you constantly asking them for updates, they just tell you based on what you’ve indicated is important.

Why webhooks are important for customers and brands

Webhooks are important because they’re a tool for creating immediacy in communication between different systems. They’re what allow applications to send customers real-time notifications about their orders, for example, so they don’t constantly need to check for that information manually.

Webhooks are also important for automating some of the tasks that come with running an online store. For example, when you receive a new customer order, a webhook can automatically update your inventory and notify your shipping team—all without you needing to do anything beyond initial set-up.

How webhooks work

You can think of webhooks working in 4 steps:

  1. Webhook URL is ready: Within the application where the event occurs, there’s a webhook URL that’s ready to send information to another application.
  2. Trigger event occurs: A trigger event occurs in the application—for example, a payment is processed or an item has shipped.
  3. Data transfers: When the trigger event happens, the application uses the webhook URL to send data.
  4. Information is received: The receiving application uses the webhook URL to process the data and perform an action based on that data.

How to set up and use webhooks in 5 steps

  1. Identify why you need a webhook: Which events do you want to track? This will depend on a variety of factors, such as whether you’re trying to boost customer acquisition or improve your post-purchase experience. For example, do you want to get an alert when a new customer signs up for a subscription or when a payment is processed?
  2. Find a webhook-compatible application as your information source: Many of the standard applications you would find in an ecommerce tech stack support webhooks. Check whether the tools you already use—like Slack, Google Sheets, or your ecommerce platform—have webhook capabilities.
  3. Set up your webhook: First, locate where to configure webhooks in your data-sending application’s settings, likely under “API” or “integrations.” Next, enter the webhook URL provided by the receiving application in the data-sending application’s settings. Then, select specific events that will trigger the webhook, such as “New Order Placed” or “Form Submitted.”
  4. Test the webhook: Before going live, run through the event to test the webhook and make sure data is sent and received correctly. 
  5. Implement regular checks: Regularly check that your webhooks are functioning as expected. Note that changes in applications or services might require updates to your webhook settings.

Ready to automate more tasks for your online store? Sign up for Klaviyo and set up automated flows and push notifications for your email, SMS, and mobile apps—so you’re spending less time on repetitive tasks and more time on revenue strategies.

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