Webhooks vs APIs

APIs are not the same as Webhooks.
If you have ever visited a farm to pick up vegetables, you will understand Webhooks fairly well. 

But before we draw the comparison, how do we define APIs?

APIs are request-based models that provide results when a request is made. Imagine, going to an apple farm but getting apples only when you request them.
But, if you go to the same apple farm and get those apples automatically in your basket after setting up a procedure, that is what webhooks do.

Webhooks are event-based meaning they give results as the events change states.
Webhooks have increased in popularity over the last few years over APIs. In fact, if you’ve used Mailchimp or Zapier, you have already used webhooks. 

Webhook process

Webhooks provide a mechanism for real-time updates based on resource availability. Consider a scenario where timely information is crucial for effective inventory management in a retail setting. Rather than constantly checking for stock availability, a more streamlined approach is implemented. By registering interest with the inventory provider and supplying relevant contact details, notifications are sent once the desired resources become available. This parallels the functionality of webhooks.

The webhook provider establishes a webhook to notify third-party app providers, such as ourselves, about the status of available resources. Upon replenishing the stock, the webhook provider initiates an HTTP POST request to the specified URL, leveraging listeners (contact information). Subsequently, third-party app providers are free to utilize the available resources in accordance with their requirements. The webhook process unfolds as follows:

• Resources ready for allocation (Event)
• Inventory provider notifies us (via listeners) upon stock replenishment
• We retrieve the resources (HTTP POST request fires as a callback)
• We employ the resources as needed (third-party providers)

In contrast, if a similar operation were conducted using APIs, the process would not involve waiting for the inventory provider to initiate contact regarding stock updates. APIs operate on request, where a request made to the API provider yields a response containing the requisite information. Consequently, maintaining the resource stock becomes essential to keep the API endpoint accessible for request initiation.

For instance, consider the creation of an API for location-based services. In this context, soliciting information about a specific location would involve a GET request to the servers to retrieve the necessary data.

So, when we ask for resources from the third-party provider, it is a GET request to the servers for resources. 

Ex. you create an API for maps. 

To put it simply, webhooks are your go-to when you need updates triggered by events. On the other hand, APIs are the speedy solution for situations demanding instant access to fresh information.

Understanding these distinctions allows for informed decisions when choosing between webhooks and APIs based on the specific requirements of a given application or system.

Use of Webhooks at Insider

We, at Insider, use Webhooks for email marketing automation. Insider helps you to create email marketing lists either manually or automatically. Tasks like adding a new user when they sign up or deleting a user when they unsubscribe can be extremely tedious. Therefore, we handle such requests by automatically updating the database using Webhooks:

• When a user joins the list,
• An email gets delivered, clicked, opened, unsubscribed, or marked as spam
• Real-time user interactions updated in the database
• Automatic or manual user segmentation

You can also choose to react to certain events using webhooks. Like:

• React to spam reports
• Identify bounced email addresses
• Create analytics for your email program

Once you set this webhook, you receive POST requests on the specified URL. So, ready for automatic event updates using Insider Webhooks with Insider?