Of course! Too may people run around thinking that they have to have concrete or a stand. Mine is 2200L and sits on about 6" of builders sand with some TP sleepers as the border. Never packed it down - didn't need to. the tank settles anyway but sand doesn't move that much.
It collects from about 70sqm of roof space so 1mm of rain = 70L. She fills pretty quickly. I used to have half that roof area feeding in but found that I can use the tank more now. if it looks like rain for a day or two, I pump about 700L back on to the garden through one of those black soaker hoses. I just run it for an hour using a simple timer on the power point. When the rain comes, she fill again. I figure it's better on the garden than back down the storm water.