It depends on what you call versions in your API, if you call versions to different representations (xml, json, etc) of the entities then you should use the accept headers or a custom header. That is the way http is designed for working with representations. It is RESTful because if I call the same resource at the same time but requesting different representations, the returned entities will have exactly the same information and property structure but with different format, this kind of versioning is cosmetic.
In the other hand if you understand 'versions' as changes in entity structure, for example adding a field 'age' to the 'user' entity. Then you should approach this from a resource perspective which is in my opinion the RESTful approach. As described by Roy Fielding in his disseration ...a REST resource is a mapping from an identifier to a set of entities... Therefore makes sense that when changing the structure of an entity you need to have a proper resource that points to that version. This kind of versioning is structural.
I made a similar comment in: http://codebetter.com/howarddierking/2012/11/09/versioning-restful-services/
When working with url versioning the version should come later and not earlier in the url:
GET/DELETE/PUT onlinemall.com/grocery-store/customer/v1/{id}
POST onlinemall.com/grocery-store/customer/v1
Another way of doing that in a cleaner way but which could be problematic when implementing:
GET/DELETE/PUT onlinemall.com/grocery-store/customer.v1/{id}
POST onlinemall.com/grocery-store/customer.v1
Doing it this way allows the client to request specifically the resource they want which maps to the entity they need. Without having to mess with headers and custom media types which is really problematic when implementing in a production environment.
Also having the url late in the url allows the clients to have more granularity when choosing specifically the resources they want, even at method level.
But the most important thing from a developer perspective, you don't need to maintain the whole mappings (paths) for every version to all the resources and methods. Which is very valuable when you have lot of sub-resources (embedded resources).
From an implementation perspective having it at the level of resource is really easy to implement, for example if using Jersey/JAX-RS:
@Path("/customer")
public class CustomerResource {
...
@GET
@Path("/v{version}/{id}")
public IDto getCustomer(@PathParam("version") String version, @PathParam("id") String id) {
return locateVersion(version, customerService.findCustomer(id));
}
...
@POST
@Path("/v1")
@Consumes(MediaType.APPLICATION_JSON)
public IDto insertCustomerV1(CustomerV1Dto customer) {
return customerService.createCustomer(customer);
}
@POST
@Path("/v2")
@Consumes(MediaType.APPLICATION_JSON)
public IDto insertCustomerV2(CustomerV2Dto customer) {
return customerService.createCustomer(customer);
}
...
}
IDto is just an interface for returning a polymorphic object, CustomerV1 and CustomerV2 implement that interface.