There were orange peels laying in the garden.
I bought a small natural cowhide rug on Rakuten.
My jacket is made of 100% dragon skin.
The kanji and the word are exactly the same. That means they share meanings as well.
Since this word is made up of a single kanji, it should use the kun'yomi reading. You haven't learned this reading yet, so here's a mnemonic to help you:
As a human (we think), you have a lot of skin. But sometimes a normal shower isn't enough to wash all that skin. What do you do when you can't fit all your skin in the shower or the tub? You get your skin cleaned at the car wash, of course!