Events are actions that occur in your commerce workflow, such as a customer changing their address or an order changing status from created to paid. Webhooks enable you to create custom functions that perform actions outside of Commerce Cloud. Together, you can set triggers so that when an event occurs in your store, the custom function runs.
You can use Webhooks to update external systems that you have integrated with your store. For example, when a customer updates their address, you can update your Customer Relationship Management system. Or when an order status changes to paid, you can reduce the affected stock in an inventory management system before you start the shipping process.
For a list of all the events that can be used with a webhook, see Observable Events in the API reference. You can also create custom events.