How to use webhooks to automate your eCommerce business

When you manage an eCommerce business, you need to constantly look for ways to improve your online operations. Without staying on top of technological developments and trends, you risk leaving your eCommerce company stuck in the past with outdated processes that produce a clunky and unresponsive customer experience. 

One of the current technological developments that you can use in your eCommerce business is webhook integration. You’ve probably come across the term “webhooks” before. However, understanding how to use them can be a different story, especially when you’re busy running a business. 

That’s why we’ve put together this guide to using webhooks in eCommerce. It includes an explanation of what webhooks are, the benefits of webhooks, and how to use them. Read on to find out more. 

What are webhooks?

Dozens of different pieces of software and digital processes are required to keep your eCommerce site running behind the scenes, from cloud PaaS systems to website infrastructures. In order for each application to work together, however, they need to have a way of communicating with each other. 

Without this means of communication, you have to take a manual approach to enter data and ensure that your workflow is working properly. This can drastically slow down your whole eCommerce digital system. 

This is where webhooks come in. Webhooks are essentially translators between different apps, which use real-time data and real-time updates to sync information between different types of technology. 

In the eCommerce sector, an example of this would be updating your inventory software. Once someone makes a purchase on your website, a webhook URL would share this information with your inventory software, which is hosted on a different technology, and allow you to better automate your eCommerce processes. 

What’s the difference between webhooks and APIs? 

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You might be thinking that all of this sounds pretty familiar. After all, aren’t application programming interfaces (APIs) just the same as webhooks? They’re certainly pretty similar. Both webhooks and APIs transfer information from a source application to a request body. APIs are a less efficient and effective form of a webhook. 

For an API to work, a request needs to be sent to the API. In other words, it can only provide information between apps periodically. Conversely, webhooks are constantly operational and provide updates in real time. This is why some people refer to webhooks as reverse APIs.

If you’re looking for ways to connect your eCommerce web app with all of your other digital services, webhooks are the best way forward. Rather than having to manually monitor and request updates, webhooks are fully automated. 

Benefits of webhooks for eCommerce businesses 

Hopefully, you now have a clearer understanding of how webhooks work. But why exactly should you start to use them in your ecommerce business? Here are the four most significant benefits of webhooks: 

1. Automated workflows

Let’s say that you use a VoIP phone service for business and you use its tools to collect data about customers. Ideally, you’d want to integrate this with your customer accounts in other systems. However, manually updating this data can be incredibly inefficient and time-consuming.

Using webhooks, however, automates this workflow. All you need to do is set up triggers, which, if met, will instantly transfer data to a different application. From this point on, any data transfers will be automatic, instant, and seamless. 

2. Real-time information transactions

Another key benefit of webhooks is how speedy they are. Unlike APIs, webhooks transfer information as soon as an event occurs, meaning that data is shared between different online services in real time. 

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This can be especially useful in eCommerce, where customers often interact in an omnichannel environment. These real-time information transactions will let your customers use an app, website, or third-party store seamlessly, even at the same time. 

3. Improved efficiency 

Beyond the initial webhook configuration, the automated nature of webhooks means that teams don’t waste precious time or resources manually inputting data in different systems. 

For example, if a customer returns an order, as long as you have an effective return management process in place, a quick scan will update all of the necessary systems – your ERP will update the stock level for that product while your eCommerce platform will show more in-stock items for customers who are interested.

Rather than separately updating each system, webhooks create trigger events that take care of communications immediately. This improves your team’s efficiency, allowing them to focus on more complex jobs. But it also reduces human errors, making it less likely you’ll miss critical data that impacts your operations.

4. Ease of use 

Finally, webhooks are easy to use. They’re based on HTTP, which is the foundation of many servers and websites. This means that they can be designed without any complex new code. All that you need to do to use a webhook is identify the webhook URL and apply this; the rest is all automated. 

By automating tasks and improving efficiency, webhooks can help reduce operating expenses for your eCommerce business, making it a cost-effective solution for streamlining your operations.

How to use webhooks in eCommerce 

The benefits of webhooks are clear. They’ll help your eCommerce business increase its efficiency and allow you to better automate your workflow. But how can you actually integrate webhooks into your business? Here are the main steps that you should follow when using webhooks in eCommerce: 

1. Identify integration points

You should always begin with a thorough and detailed analysis of your eCommerce workflow to look out for some key integration points. What are modern applications? Which of these need to be integrated? Look for junctures where real-time data transfers could improve your company’s efficiency.

Many eCommerce companies use webhooks as integration points for order processing and inventory management. Customer relationship management (CRM) and marketing automation are often other key integration points. 

For instance, tasks like incorporating financial data into your operations, such as the merger model, can be streamlined and made more efficient through the use of webhooks.

All of these are separate processes, which, despite using similar data, are usually hosted on different systems. This means that their integration can easily be made more efficient using webhooks. 

2. Choose a webhook provider

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Once you’ve found the key integration points to prioritize, you’ll have to find a webhook provider. This is a critical decision that can make or break your integration efforts. Think about factors such as compatibility with your existing systems and ease of use. 

A well-chosen provider will ensure a smooth and efficient implementation process, so make sure you choose wisely. Keep in mind that some platforms like Shopify, Stripe, and WooCommerce have built-in webhook capabilities. Or you can choose an intermediary, such as Zapier, Hookdeck, which provides the tools you need to connect various platforms.  

3. Generate webhook URLs

When it comes to actually using webhooks, you need to start by producing webhook URLs. You’ll need unique URLs for specific events in your eCommerce operations. 

These URLs serve as communication channels through which data will flow when corresponding events occur. Each URL represents a tailored endpoint for a specific integration point, allowing for precise and targeted data transfer. Ensure that the generated URLs are organized and well-documented for ease of reference during the integration process.

4. Configure your events and triggers

Turning those URLs into effective webhooks is completed at this point. You’ll need to think about the triggers that lead to the sharing of data; consider what data is important to share. For instance, you might configure a trigger to activate when a new order is placed on your website, prompting the immediate transfer of order information to your CRM system and your PIM system. 

Without configuring the right events and triggers, your webhooks will work, but won’t be as effective as they could be. Think about triggering a sharing of information every time a customer signs in, for instance. That simply wouldn’t be a useful trigger for most eCommerce companies. Thoughtful configuration is, therefore, crucial in ensuring that webhooks work well and support you in growing your business.

5. Implement security measures

Security needs to be a key consideration when integrating webhooks into your eCommerce system. Make sure that your chosen webhook provider supports secure protocols, such as HTTPS, to encrypt data during transmission. 

Additionally, you might want to consider using authentication measures to verify the integrity of incoming webhook requests. This will ensure that you’re effectively safeguarding sensitive customer data and preventing unauthorized access to your core eCommerce systems like Upsun. 

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6. Test your webhook integration

If you launch your webhooks without testing them, you risk rendering your systems unusable and your site useless. Imagine you have a webhook connecting your eCommerce search engines to your inventory system. If this fails, you’ll lose out on many potential customers who simply can’t find what they’re looking for. That’s why diligent testing is always a good idea. Try to identify and solve any issues before they occur for your customers. 

Many webhook providers offer testing environments. This will let you simulate webhook events to ensure that everything is working as planned without impacting your real systems. Once your testing is complete, you’ll be able to use your webhooks without worrying about system failures or significant disruptions. 

7. Monitor your webhook performance 

Once your webhooks are up and running, you can’t simply leave them unattended. Instead, you should make sure that you’re monitoring and assessing how well they’re working. Start by checking that your webhooks are actually transferring data from newsletter signups to your CRM, for instance. Success rate tracking is a great way to quantify this performance. 

Simply measuring performance won’t suffice, however. Any failed data deliveries should be investigated, allowing you to pinpoint the root causes and make any necessary changes. This ongoing approach to monitoring will ensure that your webhooks remain reliable and responsive. 

Use webhooks to automate your eCommerce systems 

Webhooks are a great way to ensure that your eCommerce systems are as automated and effective as possible. By automatically transferring data in real time, webhooks are the best method for integrating different eCommerce applications; they’re fully automated and allow for speedy data transfers. 

If you want to use webhooks in your own eCommerce business, start by following our key steps, including finding a webhook provider and using carefully chosen triggers. If you follow these steps, you can be confident of seeing the manifold benefits of webhooks in your company. Start to automate your eCommerce business with webhooks today!