Understanding APIs, Webhooks, and Data Integration to Empower Your Business’ Growth

If the mere mention of words like ‘API’ and ‘webhook’ make your eyes glaze over, you’re definitely not alone. Doing even a simple Google search for these terms brings back millions of results ranging from the highly technical, to the outright incorrect. But understanding what APIs and webhooks are and how they can potentially impact your business is critical to empowering your business and it’s growth.

With 26+ years of experience integrating data, VL OMNI’s article below breaks down what you need to know about APIs, webhooks, and data integration strategy so you can sit at the table with service providers and your IT department to ensure you’re getting the best possible long-term solution for your business.

Don’t have time to read? Watch this video on APIs and webhooks instead

What are APIs?

The key to all your data automation dreams starts with three little letters: A-P-I. Application program interfaces (APIs) come as part of cloud-based applications and are the portal for moving data into and out of applications: no API, no data movement!

Watch this short video on APIs for an overview of what they are and how they work.

They essentially function as messengers, delivering requests to providers requesting the data (targets), and providing responses back to the source. APIs make it possible to automate your data movements between applications and their API(s) – again, without an API this is impossible to do. It’s important to understand that not all APIs are created equal, too — there are definitely good and bad ones. The quality of your applications’ APIs impact what you can do for integration and automation; a bad API may mean the difference between achieving your automation goals, or continuing to use work-arounds and manual processes.

Another important concept around APIs and data integration is that integration is an absolute: you’re either 100% integrated, or you’re not integrated at all. Finding that you’re still manipulating your data once it reaches target applications? Sorry to break the news to you, but you’re not fully integrated (and are likely ready for a more robust solution that applies your business rules directly to the data transformation). While your API provides the functionality to automate data movements both into and out of cloud applications, webhooks are the mechanism allowing for the configuration of how that data can be moved.


What are Webhooks?

As “user-defined https callbacks”, webhooks are the configurable mechanism that allow you to control when and how your data moves out of an application according to your business rules and other factors. Webhooks operate in one of two ways: push or pull. Push webhooks are event-triggered and are instantly received. Pull webhooks are processed at a scheduled time. often sending data in batches. Which webhook format and how it’s configured will vary from business to business.

The difference between push and pull webhooks

Order volume and frequency are just two factors that have bearing on webhook configuration. So, are you receiving 100 orders per day, or 100 orders per month? Should your ecommerce orders be pushed to your ERP, CRM, and other applications instantaneously, or should they be moved in batches at regular time intervals? Where are bottlenecks and pain points in your order-to-fulfillment flow today, and can better use of APIs and webhooks help? Questions like these can help you understand your business needs before onboarding a solution or partnering with a solution provider to meet your data integration and automation needs.

The Big Picture

When integrated and configured together properly, APIs and webhooks can automate your data in a way that best suits your business’ needs, freeing up crucial time and resources so you can continue to develop your goals and strategies. When these elements are brought into a fully automated integration system that’s scalable and includes your business rules, you’ll be in a much better position for agility and growth!

For example, say your technology stack includes Shopify Plus as your eCommerce store, Prosperworks as your CRM, and TradeGecko as your OMS. You’ve grown beyond the need to simply move basic data packages like orders, invoices, and so on; instead, you want to reach 100% automation by applying your business rules to your data transformations. In your next iteration in your data integration strategy, you want to achieve the following goals:

  • Data to be pulled off your Shopify Plus store at 15 minute intervals based on your average orders per day and peak shopping times,
  • Customer names to be split up into first name and last name, and ported into corresponding Prosperworks fields,
  • Order and customer data to be pushed to TradeGecko, and inventory updates to be pushed back to your Shopify Plus store

Take your business to the next level

With a good understanding of APIs and webhooks, you’re now better prepared to source new applications that need to be added into your application mix and to sit at the table with various solutions and providers while ensuring you’re having your business’ goals met. Keep agility front-and-center in your strategy as well; don’t get saddled with a solution that doesn’t allow your business to make quick pivots to meet the quickly changing demands of the market.

In the end, if you find your business needs to change to suit the needs of your data integration strategy, stop, and re-evaluate. Your data integration strategy should meet your business’ needs, not the other way around!

With these relatively simple pieces of knowledge now in your tool bag, you’re now in a better position to make sure you’re getting what your business needs in moving to the next level of data automation and integration. With decades of expertise in data movement and automation and over 300 connectors in our integration library for both cloud applications and EDI, VL OMNI, our iPaaS platform, and joint customer-facing dashboard provides agile and scalable SaaS data integration.

Contact us here to see how we can help your business accelerate its growth while staying agile.

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