Demand Letters for Marketplace and Platform Disputes (Etsy, Amazon, Upwork, Fiverr)
If you sell on Etsy, Amazon, Upwork, Fiverr, or any other big platform long enough, you eventually hear some version of the same story.
One day everything looks fine. Orders are coming in, clients are messaging, payouts are scheduled. The next morning you wake up to a short, cold email: your account has been “suspended,” “restricted,” or “permanently disabled” for a “policy violation.” Your payouts are put on hold “pending review.” Inventory you shipped to a warehouse is suddenly “unavailable.” No one explains what actually happened.
Support replies with canned responses. Human beings are very hard to find. Meanwhile, rent, suppliers, and employees do not care that a trust-and-safety bot flipped a switch.
This article is about what to do at that point, with a specific focus on using a well-crafted demand letter as part of a broader strategy. The focus is on marketplaces and platforms such as Etsy, Amazon, Upwork, and Fiverr, where you agreed to online Terms of Service with arbitration clauses and class-action waivers.(Etsy)
The goal is not to promise miracles. The goal is to explain how these systems actually work, how lawyers tend to frame these disputes, and how a serious demand letter can help you move from shouting into the void to a structured negotiation or arbitration.
How Marketplace Disputes Usually Look In Real Life
From the outside, “platform dispute” sounds abstract. On the ground, it feels very personal.
Imagine a handmade jewelry seller on Etsy who has spent years building a five-star shop. One season, her sales spike after a viral TikTok. Etsy’s fraud filters also spike; her account is suddenly suspended for “unusual activity” and her payouts are frozen. The email references a “policy violation” but does not say which one. She is told to “reply to this email if you believe this is in error.” No one replies. Weeks later, she still cannot access months of earnings or her customer list.
Consider an FBA seller on Amazon who ships thousands of units into Amazon warehouses. After a “safety” complaint about one batch, Amazon not only removes that listing but also locks the entire account, marks inventory as “unsellable,” and holds all disbursements. Amazon’s internal Seller Performance team points to the Business Solutions Agreement (BSA) and declares the matter closed.(Amazon Seller Central)
Freelancers and agencies see a variant of the same movie on Upwork and Fiverr. A high-earning account is flagged for “suspicious activity,” “possible feedback manipulation,” or “off-platform payments.” Funds in “pending” status are suddenly “under review.” The User Agreement says disputes with the platform itself must go to binding individual arbitration and that class actions are waived.(Upwork)
These cases tend to share a few themes:
The platform uses vague policy language. Emails talk about “risk,” “integrity of the marketplace,” or “violations” without concrete facts.
The power imbalance is extreme. You cannot simply walk away: your account holds your reviews, your history, your brand presence, your inventory, and often your cash.
The contract terms are stacked in favor of the platform. Arbitration, class-action waivers, limits on liability, broad suspension rights – all of this is buried in the Terms you clicked “accept” on.(Etsy)
You cannot fix the imbalance overnight. But you can stop acting like a random support ticket and start acting like a party to a contract enforcing legal rights. That is where a carefully constructed demand letter comes in.
Before You Write Anything: Preserve Your Evidence
The most sophisticated demand letter in the world cannot fix a thin record. One of the biggest mistakes sellers and freelancers make is deleting angry messages instead of building a file.
As soon as you realize there is a serious account problem, you should think like a litigator preparing for arbitration.
Export your transaction history and payouts while you still can. Etsy, Amazon, Upwork, and Fiverr all allow you to download CSVs or statements of orders, payouts, and fees, although the exact menu paths and formats differ. The reason to save them locally is simple: if you are later locked out entirely or the interface changes, you still have a frozen snapshot of what happened.
Keep copies of every platform notice. That includes suspension emails, “trust and safety” messages, warning notices, and internal ticket IDs. These messages show how the platform characterizes your conduct, and they become important when you argue that the platform did not follow its own procedures.
Document your performance. Many disputes turn on whether you are a risky actor or a solid, low-risk account that got swept up in an algorithmic dragnet. Screenshots of your rating history, on-time delivery metrics, refund rates, and customer messages can all become exhibits in a demand letter or arbitration brief.
For physical inventory problems, record the details immediately. Write down shipment IDs, tracking numbers, warehouse IDs, and the exact SKUs and quantities you sent to Amazon or another third-party logistics program. If Amazon marks your products as “lost” or “destroyed” and offers a token reimbursement, it is much easier to push back when you have your own contemporaneous records.(Amazon Seller Central)
If there were internal appeals, gather them. Platforms like Etsy, Amazon, Upwork, and Fiverr generally expect you to go through their internal appeals or dispute processes first, and some require it before you can invoke arbitration. Saving copies of what you sent and how the platform responded helps you later show that you cooperated in good faith.(Etsy)
A demand letter backed by documents carries a very different weight from one backed by frustration alone.
Understanding The Contracts You Are Actually Fighting
Marketplace disputes are not fought in a vacuum. They are framed by several overlapping agreements and legal regimes.
The Platform’s Terms of Service And Policies
Each major platform has a bundle of terms that govern your relationship:
Etsy’s Terms of Use and related policy pages function as “Our House Rules.” For users in North and South America, the Terms contain a binding arbitration agreement and a class-action waiver. They also set out how Etsy may suspend or terminate accounts and how certain disputes must be handled.(Etsy)
Amazon’s Services Business Solutions Agreement (BSA) governs sellers on its marketplace. It authorizes Amazon to withhold disbursements and manage or dispose of inventory, includes robust limitations of liability, and directs most disputes into arbitration, typically under AAA rules, with a Nevada registered agent as the notice address in at least some versions.(Amazon Seller Central)
Upwork’s User Agreement is part of a broader set of “Terms of Service” that include the Terms of Use and various escrow instructions. Section 14 of the User Agreement includes a mandatory arbitration agreement and class-action waiver for claims brought against Upwork in the United States, with a short window to opt out.(Upwork)
Fiverr’s Terms of Service likewise contain an arbitration clause that applies to U.S. users, state that the Federal Arbitration Act governs arbitrability, and include a class-action waiver.(fiverr.com)
When you write a demand letter, you are not just complaining about fairness. You are arguing that, even under these Terms, the platform acted wrongfully or unreasonably. That is why it is critical to read the terms that were in effect at the time of your dispute, not just the current version.
Your Contracts With Buyers Or Clients
Many sellers and freelancers forget that they are in two contractual relationships at once: one with the platform and one with the actual buyer or client.
If Amazon loses inventory and you cannot fulfill orders, you may owe refunds or replacements to buyers under your separate terms of sale, even if the root cause is Amazon’s mishandling. If Upwork freezes funds, your client may still expect delivery, and disputes over scope and milestones may resurface.
A good demand letter to the platform usually explains, in plain English, how the platform’s actions are forcing you into breach or near-breach of these downstream obligations. It is not enough to say “I am losing money.” It is more effective to say “Because the account was frozen without notice, the seller was unable to fulfill 200 paid orders and had to issue refunds, absorb chargebacks, and lose future customer goodwill.”
Arbitration And Class-Action Waivers
These platforms have moved almost everything into private arbitration on an individual basis. Instead of suing in court, you are generally expected to send a formal “notice of dispute” and then file an arbitration demand with a provider like the American Arbitration Association (AAA) if the matter does not resolve.(Etsy)
From a demand-letter perspective, that has several consequences.
You should be aware of any contractual requirement that you send a written notice to a specific address or email before filing arbitration. Failing to follow those steps gives the platform an easy procedural objection later.
You should be realistic about the economics. Arbitration can be powerful, particularly in higher-value cases where substantial funds or inventory are at stake, but it takes time and effort and may involve fees, even though modern mass-arbitration dynamics and consumer rules can shift some of that cost onto the platform.(Cabilly & Co)
Your demand letter therefore does double duty: it is both a last chance to resolve informally and the document an arbitrator may later read to understand what happened.
Internal Appeals, Regulators, And Demand Letters: Choosing The Right Mix
Most platforms do not want to see a demand letter as the first step. They want users to work through internal channels first.
On Etsy, permanent shop suspensions and policy strikes are typically challenged through an online appeals process or email response to the enforcement notice. Etsy’s IP policy also sets out DMCA takedown and counter-notice procedures for listings accused of copyright infringement.(Etsy)
On Amazon, you may submit a “Plan of Action” to Seller Performance, laying out the alleged root cause of the violation and what you have done to fix it. Many sellers send multiple rounds of these appeals before Amazon issues a final denial or simply stops responding.(Amazon Seller Central)
Upwork has internal dispute resolution for client–freelancer disputes over fixed-price contracts and a separate set of procedures and notices when the platform itself suspends an account or freezes funds. Arbitration is the final step only after those channels have been exhausted.(Upwork Support)
Fiverr uses support tickets and its own “Resolution Center” as the primary interface, but its Terms of Service also explain when claims must proceed to individual arbitration under AAA rules.(fiverr.com)
Internal appeals are often frustrating, but they serve two important functions. First, they are cheap relative to arbitration or external legal work. Second, they create a paper trail. When a lawyer later drafts a demand letter, it is extremely helpful to be able to say: these are the specific appeals submitted, these are the specific responses, and here is where the platform failed to apply its own rules reasonably.
Regulators can also play a role. When a marketplace is effectively holding consumer funds or acting as a payment service provider, complaints to regulators such as the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), or state financial regulators like the California Department of Financial Protection and Innovation (DFPI) may be appropriate in serious cases.(Passle)
A demand letter that quietly notes the client’s willingness to pursue arbitration and to file complaints with appropriate regulators tends to be taken more seriously than one that simply threatens to “go public on social media.”
How To Draft A Demand Letter To A Marketplace Or Platform
Demand letters in this context are not angry blog posts. They are structured legal documents designed to speak to in-house counsel, outside arbitration counsel, and sometimes regulators.
Setting The Tone
The tone should be firm, factual, and professional. Think of how an arbitrator will perceive the letter months later. A narrative full of insults, accusations of fraud, or threats to “ruin the company” undermines the impression that you are a credible businessperson.
It is usually more effective to write as if you expect a lawyer on the other side to read and respond. That means clear paragraphs, neutral language when describing disputed facts, and a focus on contractual and legal issues rather than moral outrage.
Telling The Story
Start with a concise but detailed chronology. Explain what the account was used for, how long it has been active, and what its performance history looked like. Then describe the triggering event: a particular customer complaint, a policy warning, a DMCA notice, a KYC request, or a sudden suspension without warning.
The goal is to make it easy for the recipient to see that this is not a vague “I feel wronged” email. It is a specific account with a specific history and a specific problem.
As you describe your story, connect each key moment to a document: an email, a screenshot, an appeal. You do not need to attach every scrap of evidence at the demand-letter stage, but you should be clear that you have it and are prepared to provide it.
Citing The Platform’s Own Terms
A good marketplace demand letter meets the platform on its own turf. That means citing sections of the Terms of Service and policies that are relevant to your situation.
If Etsy’s Terms promise certain notice procedures or explain how disputes will be handled, point to those sections and explain how they were not followed in your case.(Etsy)
If Amazon’s BSA allows it to hold funds only to cover specific liabilities, and you can show that your chargeback or refund rates are far below the levels that would justify an extended hold, make that connection explicit. If the BSA limits Amazon’s liability in certain ways, you acknowledge those limitations but still explain why specific conduct amounts to breach or bad faith.(Amazon Seller Central)
If Upwork’s User Agreement requires an informal dispute-resolution period before arbitration and you are sending the letter as that formal notice, say so. Quote or paraphrase the relevant language and make clear that you are complying.(Upwork Legal Center)
If Fiverr’s Terms say that AAA rules and New York law govern the arbitration, you can reference that framework and signal that you understand the process and are prepared to pursue it if necessary.(fiverr.com)
The point is not to overwhelm the recipient with legal jargon. The point is to show that you are not simply begging for mercy; you are asserting rights under the same documents the platform relies on when it suspends you.
Explaining The Harm
Marketplace disputes often involve several layers of harm.
There is the direct harm of frozen payouts, destroyed or stranded inventory, or blocked access to current projects. There is also indirect harm: lost customers, damaged reputation, advertising spend wasted on now-inaccessible traffic, and the time and resources spent trying to fix the issue.
Your demand letter should quantify what can be quantified, even if only in rough ranges. For example, “At the time of suspension, the account had approximately $25,000 in cleared earnings in the payout queue and $40,000 in saleable inventory at Amazon warehouses under the FBA program, based on our own purchase records and Amazon’s inventory reports.”
Even if certain consequential damages may be limited or excluded under the Terms, it is still important to paint a full picture of the impact. That context matters both for settlement discussions and for any arbitrator reviewing the case later.(Amazon Seller Central)
Making A Clear, Reasonable Demand
A marketplace demand letter should not be a fantasy wish list. It should propose specific, realistic remedies that are proportionate to the situation and consistent with the contract.
Common demands might include releasing specific frozen funds, crediting an additional amount for lost or destroyed inventory, reinstating an account (possibly subject to reasonable conditions), or at least providing a detailed explanation of the alleged violation so that the seller can remedy it.
If arbitration is a serious option, the letter can also propose that the platform agree to mediate or arbitrate under specified rules, or that it consider an early settlement to avoid the cost of formal proceedings.
The demand should be tied to a reasonable deadline. In this space, deadlines are often measured in days or a couple of weeks, not hours, taking into account the platform’s internal escalation processes.
Signaling Next Steps
Because of the arbitration clauses, the usual “we will sue you in court” closing is not accurate. Instead, a marketplace demand letter typically states that, if the platform does not resolve the dispute, the user will pursue binding arbitration in accordance with the Terms and may file complaints with appropriate regulators where warranted.
You do not need to make that sound theatrical. It is enough to make clear that you know where the dispute is headed and that you are prepared to follow through.
Platform-Specific Issues Worth Flagging
Although the general approach is similar across platforms, each has its quirks.
Etsy
Etsy positions itself as a community marketplace for handmade and vintage goods. Its enforcement priorities often revolve around authenticity, trademark and copyright issues, and compliance with sanctions and trade controls.
From a demand-letter perspective, two things stand out.
First, the DMCA framework for copyright takedowns. Etsy, like many U.S.-based platforms, follows DMCA procedures for notices and counter-notices. Filing a counter-notice can be powerful because it forces the complainant either to file a lawsuit or allow the content to be restored, but it also involves legal risks and consent to jurisdiction in the United States.(Etsy)
Second, Etsy’s arbitration clause and class-action waiver for users in North and South America, along with any opt-out rights. It is worth checking whether the user opted out of arbitration within the allowed timeframe, as that changes the litigation landscape.(Etsy)
A serious Etsy demand letter will usually address both policy enforcement and the DMCA/IP layer where relevant.
Amazon
Amazon disputes increasingly end up in arbitration, particularly in higher-value cases involving large inventory or frozen funds. The BSA’s limitation-of-liability clause caps Amazon’s exposure to amounts paid by the seller over a certain period and disclaims responsibility for lost profits, business, or data.(Amazon Seller Central)
That makes the framing of the dispute crucial. Arguments that Amazon failed to follow its own procedures, acted arbitrarily or in bad faith, or misapplied safety or authenticity policies often carry more weight than pure consequential-damage theories.
Demand letters in Amazon cases often double as the initial “notice of dispute” required by the arbitration clause. They tend to be more formal, with clear statements of the claims, the contractual provisions implicated, the amount in controversy, and a statement that the seller intends to initiate AAA arbitration if the matter is not resolved.(Amazon Seller Central)
Upwork
Upwork disputes break into two buckets: disputes between freelancer and client, and disputes between users and Upwork itself.
The former are handled mostly within Upwork’s own dispute and arbitration framework for fixed-price contracts, which includes a process where a neutral third party makes a binding decision if both sides agree and pay the required fees.(Upwork Support)
The latter – account suspensions, funds held for “investigation,” enforcement of off-platform payment rules – are governed by the User Agreement’s arbitration clause and class-action waiver. U.S. users have a limited period after accepting the terms to opt out of arbitration, but most do not.(Upwork)
Demand letters to Upwork typically emphasize compliance with its rules (no off-platform payments, no feedback manipulation, accurate profiles), the quality and longevity of the account, and the disproportionate impact of extended holds or permanent suspensions.
Fiverr
Fiverr’s marketplace is built around gigs and packages, and its enforcement model focuses heavily on fraud, multiple accounts, and quality-of-service issues.
Its Terms of Service include an arbitration clause, governed by the Federal Arbitration Act, and a class-action waiver, similar in spirit to the others. Some related services (such as business-oriented offerings) may have their own terms but generally echo the same ADR structure.(fiverr.com)
Demand letters to Fiverr often highlight a clean history of completed gigs, the financial impact of extended review or suspension of clear funds, and a willingness to cooperate with KYC and additional verification to resolve perceived risk.
Free Demand Letter Template For Marketplace And Platform Disputes
The following template is a starting point. It is intentionally generic and should be customized to fit your jurisdiction, the specific platform, and the applicable Terms of Service in effect when your dispute arose.
You can adapt it for Etsy, Amazon, Upwork, Fiverr, or similar platforms by adjusting the factual narrative, policy citations, and requested remedies.
[Your Name Or Business Name]
[Street Address]
[City, State, ZIP]
[Email Address]
[Phone Number]
[Date]
Via Email And U.S. Mail
[Platform Legal Name]
[Registered Agent Or Legal Department Address, If Known]
Re: Demand Regarding [Account Suspension / Withheld Payouts / Lost Inventory] – [Account Name / ID]
To Whom It May Concern:
This letter concerns the [Account Name / ID] account on your [platform/marketplace] and the platform’s recent actions to [suspend the account / withhold payouts / restrict access to inventory] without adequate notice or justification. The purpose of this letter is to set out the relevant facts, identify the applicable contract terms, explain the harm caused, and demand appropriate relief. Where required by your Terms of Service, this letter also serves as formal notice of dispute prior to the initiation of binding arbitration.
Background And Account History
[Your business] has used your platform under the above-referenced account since approximately [year]. During that time, the account has maintained strong performance metrics, including [brief description of ratings, order completion rates, dispute rates, or other relevant indicators]. The account has generated significant revenue for both [your business] and the platform.
On or about [date], [describe precipitating event, such as receipt of a policy-violation email, a notice of suspension, a DMCA takedown, or a sudden freeze of payouts]. The notice stated that the account allegedly violated [describe the cited policy, if any] but did not identify specific orders, listings, or conduct.
Following that notice, [your business] submitted a timely appeal on [date], providing [describe key points and documents submitted: invoices, supplier information, customer communication, proof of authenticity, explanation of business model]. Despite these efforts, the platform has [maintained the suspension / continued to withhold funds / failed to provide any meaningful response] as of the date of this letter.
Relevant Contract Terms And Policies
The relationship between [your business] and the platform is governed by the platform’s Terms of Service and related policies, including [identify precise document if known, such as Etsy’s Terms of Use, Amazon’s Services Business Solutions Agreement, Upwork’s User Agreement and Terms of Service, or Fiverr’s Terms of Service]. Under those terms, the platform reserves certain rights regarding account suspension, risk management, and handling of payouts and inventory. It also imposes obligations on the platform to act in good faith and consistent with its stated procedures.
By way of example, [cite or paraphrase relevant sections without copying excessively: for instance, provisions relating to suspension and termination, payout holds, inventory handling, appeal procedures, notice requirements, or dispute resolution]. While the platform retains discretion to enforce its policies, that discretion is not unlimited and must be exercised in a manner consistent with the implied covenant of good faith and fair dealing and applicable consumer-protection and unfair-competition laws.
In this matter, the platform has not followed its own procedures or applied its policies reasonably. The notices provided to date do not identify any specific factual basis for the alleged violation, do not explain which policy provisions are implicated, and do not address the detailed evidence furnished with [your business’s] appeals. The continued [suspension / payout hold / restriction] therefore lacks a contractual and factual foundation.
Harm To The Business
The platform’s actions have caused substantial harm to [your business]. At the time of the [suspension / payout hold], the account had approximately [insert amount] in cleared earnings scheduled for disbursement. Those funds represent payment for goods and services that have already been delivered or are in the process of being delivered. The ongoing hold on those funds has impaired [your business’s] ability to pay suppliers, fulfill customer orders, and meet ordinary operating expenses.
The platform’s actions have also affected [your business’s] relationships with customers. Because of the account restrictions, [your business] has been unable to process or fulfill approximately [number] existing orders, leading to cancellations, refunds, and reputational damage that will continue to affect the business even if the account is later restored.
Where relevant, the platform’s handling of physical inventory has caused additional losses. The account currently reflects approximately [number] units of held in [describe fulfillment program, such as Amazon FBA or a similar facility], valued at approximately [amount] based on acquisition cost. The platform’s designation of this inventory as [unsellable / pending disposal / lost] and its failure to provide adequate reimbursement constitute an additional and unjustified loss.
Legal Theories And Liability
Based on the facts and documents summarized above, [your business] asserts that the platform’s conduct constitutes breach of contract, including breach of the implied covenant of good faith and fair dealing, and may also violate relevant unfair-competition and consumer-protection laws in the applicable jurisdiction. To the extent third-party rights or intellectual-property allegations are involved, [your business] reserves all rights and defenses under applicable copyright, trademark, and DMCA provisions.
[Your business] is aware that the platform’s Terms of Service include an arbitration agreement and class-action waiver for disputes between the platform and users, and that those terms may limit certain categories of recoverable damages. Nothing in this letter should be construed as a waiver of any rights or remedies available under those terms or under applicable law.
Demand For Relief
To resolve this matter without further escalation, [your business] demands that the platform take the following actions within ten (10) days of receipt of this letter:
Release all cleared and undisputed funds associated with the account, currently totaling approximately [amount], to the designated payout method.
Reinstate the [Account Name / ID] account to full selling privileges, or, at minimum, provide a detailed written explanation of any remaining concerns together with a clear, reasonable path to reinstatement.
For any inventory that has been lost, destroyed, or rendered unsellable as a result of the platform’s actions, provide appropriate reimbursement consistent with the platform’s own policies and applicable law, including reimbursement for [briefly describe affected SKUs].
Confirm in writing that the account will not be labeled internally as fraudulent or abusive based on the events described above, and that any such labels previously applied will be removed.
[If appropriate, request additional specific remedies tailored to your case, such as correction of negative internal risk flags, removal of unjustified policy strikes, or written clarification that you did not engage in certain alleged conduct.]
Next Steps
If the platform does not provide a satisfactory response within the timeframe above, [your business] intends to pursue all available remedies, including but not limited to initiating binding arbitration in accordance with the platform’s Terms of Service, and, where appropriate, submitting complaints to relevant consumer-protection and financial-services regulators.
Nothing in this letter is intended as, or should be construed as, an exhaustive statement of all facts or legal theories, or as a waiver of any rights or remedies, all of which are expressly reserved.
Please direct all future communications regarding this matter to the undersigned at the contact information above.
Sincerely,
[Signature]
[Name]
[Title, if applicable]
[Business Name]
Again, this template is a starting point. It should be carefully adjusted for your jurisdiction, your platform, and your actual facts.
Frequently Asked Questions About Marketplace Demand Letters
Can I really send a demand letter to a huge company like Amazon or Etsy?
Yes. A demand letter is simply a structured, written notice that sets out your position and what you want. Big platforms receive them all the time, both from lawyers and from users themselves. What matters is not whether you are “allowed” to send one, but whether you do it in a way that is coherent, accurate, and consistent with the contract you agreed to when you opened the account.
Do demand letters actually work with marketplaces, or do they just get ignored?
They do sometimes work, especially when the letter is fact-rich, backed by documents, and realistic in its demands. In straightforward cases – for example, an obvious internal error or a misunderstanding that can be resolved with a supplier invoice or identity document – a serious demand can push the case onto someone with more authority. In harder cases, the letter at least sets up a clean record for arbitration or regulatory complaints, which is valuable even if the platform’s initial response is unhelpful.
Is it enough to send a demand letter to customer support?
Usually not. Support queues are designed for high-volume interactions, not legal disputes. For a formal demand, you generally want to send it to the address specified for legal notices or “notices of dispute” in the Terms of Service, which may be a postal address for a registered agent, a dedicated email, or both. You can still copy support if you want, but the primary delivery should follow the contract’s instructions.(Amazon Seller Central)
Do I have to hire a lawyer to send a demand letter to a platform?
No. Many users draft their own letters using templates like the one above. That said, marketplaces and their counsel can tell when a letter is carefully structured and grounded in the Terms and applicable law. In higher-value cases, particularly those involving large frozen balances or substantial inventory, it is often worth having counsel refine or rewrite the draft so it does not accidentally concede something important or overlook a key issue.
What if I agreed to arbitration and a class-action waiver in the Terms?
That is the norm on these platforms. Arbitration clauses and class-action waivers mean that, in most cases, you will not be pursuing a class action in court; you will be pursuing individual arbitration or small-claims court if the contract allows it.(Etsy) The demand letter simply acknowledges that reality and positions your case within that framework.
Can I go straight to arbitration without sending a demand letter?
Often, you cannot. Many of these Terms require an informal dispute-resolution step or a written “notice of dispute” before arbitration can be filed. The demand letter can serve as that notice if it is addressed and framed correctly. Skipping that step gives the platform an easy procedural argument that the arbitration is premature.(AbilityOne)
How long should I give the platform to respond?
There is no universal rule, but ten to fourteen days is common in this context. That is usually enough time for the letter to be routed to the right internal team and for them to decide whether to engage. In some urgent cases – for example, where perishable inventory is about to be destroyed – a shorter deadline may be justified, but it should still be realistic if you want to be taken seriously.
Should I threaten to “go public” on social media in my demand letter?
From a legal perspective, that tends not to be the strongest move. Platforms are more concerned about formal legal exposure and regulatory scrutiny than about one more angry post. Also, overly aggressive public threats can backfire and may raise ancillary risks, such as accusations of defamation if the statements are not accurate. It is usually more effective to keep the demand letter focused on contracts, facts, and formal remedies.
Can I ask the platform to pay for my lost profits and future business?
You can ask, but you should read the limitation-of-liability clauses first. Amazon’s BSA, for example, expressly excludes liability for loss of profit, revenue, business, or data and caps its liability at a defined monetary limit based on fees paid.(Amazon Seller Central) Other platforms have similarly restrictive clauses. You can still describe your broader losses in the narrative, but your core monetary demands should reflect what the contract realistically allows.
What if the platform says I violated policy but refuses to tell me how?
That is common and frustrating. In a demand letter, you can and should highlight that lack of detail. You can explain the steps you have taken to investigate your own conduct, provide supporting documentation, and point out that, without a clear explanation, you cannot effectively remediate any issue. In arbitration, that kind of opacity can be used to argue that the platform’s enforcement was arbitrary or in bad faith.
Is there any point in mentioning regulators like the CFPB or FTC?
Sometimes, yes. When a platform holds large amounts of money for long periods or markets “seller protection” features that it does not actually honor, there can be angles under consumer-protection and financial-services law. Complaints to agencies such as the CFPB, FTC, or state-level regulators like DFPI can put additional pressure on a platform, and mentioning that you are considering such complaints signals that you are thinking beyond the support queue.(Passle)
Can I use small-claims court instead of arbitration?
In some cases, yes. Some Terms explicitly allow users to bring individual claims in small-claims court as an alternative to arbitration for disputes under a certain dollar amount.(Fiverr Workspace) However, the availability and practicality of that route depend on your jurisdiction, the platform’s Terms, and the specific facts. Small-claims judgments also have limitations, especially when the defendant is a large, out-of-state corporation.
What if my account is outside the United States?
Jurisdiction matters. The arbitration clauses and governing-law provisions often differ for users in the EU, UK, or other regions. Some countries limit the enforceability of certain waivers or impose their own consumer-protection rules. If you are outside the U.S., you should pay close attention to the regional version of the Terms that apply to you and, in significant cases, consider local legal advice.
Can a demand letter make my situation worse?
In most cases, a well-written demand letter does not make things worse; it just clarifies positions. That said, there are scenarios where careless wording can be harmful. For example, admitting to conduct that violates sanctions, tax laws, or criminal statutes is rarely a good idea. Likewise, making clearly false factual statements can create credibility problems later, and making reckless accusations can open the door to defamation counterclaims. Care and precision matter.
How detailed should I be about my evidence in the letter?
You do not need to attach your entire case file to the demand letter. It is usually enough to summarize the key evidence and make clear that supporting documents are available. For example, you might state that you have invoices, supplier contracts, and correspondence that substantiate product authenticity or service delivery, and that you will provide them in arbitration or upon request in a structured escalation.
Should I admit any mistakes in my demand letter?
Honesty helps, within reason. If a minor mistake clearly occurred – for example, a single late shipment or an unintentional listing error – acknowledging it and explaining how you corrected it can strengthen your overall credibility. On the other hand, you should avoid speculative self-incrimination, especially on issues with potential regulatory or criminal implications. Stick to facts you know and can support.
How do I handle IP takedowns and DMCA issues in a demand letter?
Carefully. DMCA takedowns follow a specific statutory process, including the option to file a counter-notice that can lead to restoration of content unless the complainant files a lawsuit.(Passle) Counter-notices are powerful but carry legal consequences, including submission to jurisdiction in certain courts. In a demand letter, you can address misuse of the DMCA by bad-faith complainants and the platform’s handling of repeat notices, but any decision to file a formal counter-notice deserves special attention.
What if my dispute is with a buyer or client, not the platform itself?
Then the primary relationship at issue is your contract with that buyer or client. Upwork’s and Fiverr’s internal dispute processes may govern some aspects of those disputes, particularly around escrow releases, but you may also have direct contract rights outside the platform. A demand letter in that context is directed at the other party, not the marketplace, and follows a slightly different playbook focused on your service agreement or terms of sale.
How long should I wait after sending a demand letter before escalating?
If you set a clear deadline in the letter – for example, ten calendar days – it is reasonable to wait that long unless there is a genuine emergency. If you receive a substantive response indicating that the platform is actively reviewing the matter, you may choose to extend the deadline slightly to see if the issue can be resolved without arbitration. If the response is purely boilerplate or there is no response at all, then proceeding to arbitration or regulatory complaints becomes more reasonable.
Can I reuse the same demand letter for multiple platforms?
You can reuse structure and certain language, but you should not blindly reuse the entire letter. Each platform has different terms, different procedures, and different factual patterns. A letter that looks like a form and cites the wrong policies will not be taken seriously and may signal that you are not paying attention. It is better to treat each letter as a tailored document that happens to reuse a common skeleton.
What is the single most important thing to remember when drafting a marketplace demand letter?
The most important thing is to remember that you are building a record. The letter is not just something you hope will get an email un-suspended. It is something an arbitrator, regulator, or later lawyer may read to understand what happened. If you keep that in mind, you will naturally move away from venting and toward clear facts, contract citations, and realistic demands – the things that actually change outcomes in this space.